Location: Stephenson County, IL | Metro: Stephenson County, IL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 61018 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $920. This figure represents the maximum amount that the housing authority will pay towards a tenant's rent under the Section 8 program. However, it's important to note that the local market rent, according to the Census ACS, is significantly lower at $656.
A voucher payment under Section 8 consists of two parts: the subsidy paid directly to the landlord by the housing authority and the portion contributed by the tenant. The tenant is typically required to pay 30% of their adjusted income towards rent. For instance, if a tenant's adjusted monthly income is $1,500, they would contribute $450 (30% of $1,500) towards the rent. The remaining balance up to the SAFMR of $920 would be covered by the housing authority.
In addition to the base rent, the housing authority also provides an allowance for utilities. This allowance varies but is designed to cover a reasonable portion of the tenant's utility costs. Let's assume an average utility allowance of $150 per month. Therefore, the total reimbursement a landlord can expect from the housing authority for a two-bedroom unit would be the SAFMR of $920 plus the utility allowance of $150, totaling $1,070.
To illustrate, if a tenant contributes $450 towards rent, the housing authority would then pay the landlord $470 ($920 - $450) for the base rent plus the $150 utility allowance, making the total reimbursement $620. This example assumes a tenant income that results in a contribution of exactly $450, which is not always the case, but it serves to demonstrate the calculation.
Given that the local market rent is $656, there is a potential surplus for landlords accepting Section 8 vouchers in ZIP 61018. The difference between the SAFMR and the local market rent is $264 ($920 - $656). This means that landlords could potentially charge the market rate of $656 and still receive a higher reimbursement of $920 from the housing authority, leaving them with a surplus of $264 per month.
However, it's crucial for landlords to understand that the actual reimbursement may vary based on the tenant's income and the specific terms of their voucher. The key takeaway is that landlords in ZIP 61018 can generally expect a positive financial outcome when participating in the Section 8 program, given the discrepancy between the SAFMR and the local market rent.
Data Sources: FMR data from HUD (2027). 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.