Section 8 Fair Market Rent (FMR) for ZIP 61016 - 2027

Location: Rockford, IL | Metro: Rockford, IL MSA

Investment Score for ZIP 61016

Monthly Rent (2BR)

$1,060

Median Price (2BR)

$203,095

1% Rule

0.52%

Annual Yield

6.26%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$740
1 Bedroom	$810
2 Bedrooms	$1,060
3 Bedrooms	$1,400
4 Bedrooms	$1,440
5 Bedrooms	$1,670
6 Bedrooms	$1,870
7 Bedrooms	$2,020
8 Bedrooms	$2,121

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,060	$203,095	0.52%	F
3BR	$1,400	$293,162	0.48%	F
4BR	$1,440	$362,198	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

5,465

Median Household Income

$84,883

Housing Units

2,325

Renter Percentage

10.3%

Occupancy Rate

96.5%

Renter Occupied

231

In ZIP code 61016, which encompasses Cherry Valley, IL, in Winnebago County, the economics of Section 8 housing vouchers are crucial for landlords and small-portfolio investors to understand. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $930. This SAFMR is specifically tailored for this ZIP code, reflecting the unique rental dynamics within the area.

The local market rent for a two-bedroom unit, based on Census ACS data, averages $1,021 per month. This means that landlords can expect a discrepancy between the SAFMR and the actual market rates when considering participation in the Section 8 program. To clarify how a voucher payment works, it's important to break down the components involved:

Tenant Portion: Tenants typically pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500 (this figure can vary widely), the tenant would contribute approximately $450 towards the monthly rent.
Voucher Reimbursement: The Housing Authority will then cover the difference between the tenant’s contribution and the SAFMR. In this case, it would be $930 - $450 = $480.
Utility Allowances: Utility allowances are also factored into the total voucher payment. These allowances can range but are generally around $200-$300 for a two-bedroom unit. Let's use $250 as an example for simplicity.

Therefore, the total reimbursement a landlord would receive for a two-bedroom unit in ZIP 61016, assuming the above figures, would be the sum of the tenant's portion ($450) and the voucher reimbursement plus utility allowance ($480 + $250 = $730), totaling $1,180. However, since the SAFMR caps the maximum reimbursement at $930, the actual reimbursement would be $930 plus the utility allowance, making it $1,180.

Given that the local market rent is $1,021, participating in the Section 8 program in ZIP 61016 would result in a surplus for landlords. Specifically, the surplus would be $1,180 - $1,021 = $159 per month. This surplus provides an additional financial incentive for landlords to consider accepting Section 8 tenants, especially if they are looking to manage risk and ensure steady rental income.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.