Location: Ogle 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 | $860 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,530 | $277,243 | 0.55% | F |
| 4BR | $1,770 | $322,103 | 0.55% | F |
U.S. Census Bureau data (2024)
The ZIP code 61020 represents a neighborhood characterized by a relatively small population of 3,149 residents, where only 7.6% are renters. This indicates a predominantly owner-occupied area, with a median household income of $105,769, placing it well above the national average. The median home value in this area stands at $269,729, reflecting a stable housing market.
Regarding rental economics, the Fair Market Rent (FMR) for ZIP 61020 in fiscal year 2024 is set at $1,160. However, the specific market rent data for the area is currently unavailable. Given the low percentage of renters and the absence of precise market rent figures, it suggests that the rental market might be less competitive and potentially more challenging to operate in.
For a Section 8 investor, ZIP 61020 could be a suitable location for a hands-off voucher operator due to the high median income, which implies a higher likelihood of tenants being able to cover their portion of the rent. The relatively stable median home value also supports this approach, as it reduces the risk of significant property devaluation. On the other hand, a hands-on value-add buyer might find limited opportunities for growth in the rental sector, given the scarcity of renters and the lack of detailed market data. Nonetheless, focusing on improving the quality of rental units to meet or exceed the FMR could be a strategic move in this niche market.
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.