Location: Stephenson County, IL | Metro: Rockford, IL MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $214,573 | 0.59% | F |
| 3BR | $1,620 | $254,628 | 0.64% | D |
| 4BR | $1,860 | $326,768 | 0.57% | F |
U.S. Census Bureau data (2024)
In ZIP 61019, which encompasses Davis, IL, and parts of Stephenson County, understanding the economics of Section 8 housing can significantly impact a landlord's decision to participate. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1120. This figure is crucial because it represents the maximum amount that the Housing Choice Voucher program will reimburse landlords for rent.
The local market rent, according to Census ACS data, is currently $972 for a similar unit. This lower figure indicates that the SAFMR in ZIP 61019 is above the average market rent, which could be beneficial for landlords who might otherwise receive less due to the prevailing rental rates.
A Section 8 voucher pays the difference between the SAFMR and the tenant's portion of the rent, which is typically 30% of their income. For instance, if a tenant's monthly income is $1500, their portion would be $450 (30% of $1500). The voucher would then cover the remaining $670 of the local market rent ($1120 - $450), ensuring the landlord receives the full $972.
Utility allowances also factor into the total reimbursement. These allowances vary but generally provide additional funds to cover electricity, gas, water, and sewer. In ZIP 61019, the utility allowance is included in the SAFMR calculation, meaning it's already part of the $1120 limit. Landlords should note that they cannot charge tenants for utilities separately if these costs are included in the SAFMR.
To illustrate the typical reimbursement scenario, let’s assume a tenant has an income that requires them to pay $450 towards the rent. The voucher would then cover the rest up to the SAFMR limit. Since the local market rent is $972, the voucher would cover $522 ($972 - $450), ensuring the landlord receives the full market rate without any shortfall.
In ZIP 61019, landlords participating in Section 8 can expect a surplus when comparing the SAFMR to the local market rent. Specifically, for a two-bedroom unit, the typical surplus would be $148 per month ($1120 - $972). This surplus provides a buffer against potential shortfalls and ensures that landlords are not financially disadvantaged by accepting vouchers.
However, it's important to remember that while the SAFMR is set at $1120, the actual reimbursement is tied to the local market rent, which is $972. Thus, landlords must ensure that their rents do not exceed the market rate to avoid losing out on the full reimbursement amount. By keeping the rent at or below the market rate, landlords can maximize their financial benefits from the program.
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.