Location: Stephenson County, IL | Metro: Stephenson County, IL
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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $113,198 | 0.83% | C |
| 3BR | $1,190 | $170,006 | 0.7% | D |
| 4BR | $1,470 | $217,776 | 0.68% | D |
| 5BR | $1,705 | $251,596 | 0.68% | D |
U.S. Census Bureau data (2024)
The ZIP code 61032, located in Freeport, IL, presents a unique challenge for renters given the local economic conditions. The median income stands at $56,593, which is a key figure when considering the cost of living, especially housing. Renters face a market rate of $800 per month, according to Census ACS data, which already represents a significant portion of their monthly budget. To put this into perspective, if we assume a typical household spends around 30% of its income on housing, the $800 rent would consume nearly half of the average household's income, leaving limited funds for other essential expenses.
Comparatively, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $920. This higher benchmark indicates that even the market rate is somewhat below what is considered fair and reasonable in the region. However, it also means that the difference between the market rate and the FMR, which is $120, could be a critical factor for both landlords and tenants. For those relying on Section 8 vouchers, the $920 FMR is the maximum amount that can be paid by the program, providing a subsidy to cover the $800 market rate plus an additional $120, assuming the voucher fully covers the rent.
Given that 35.0% of the 29,020 residents are renters, there is a notable segment of the population seeking affordable housing options. This creates a competitive landscape for landlords, as they must balance the need to attract tenants with the reality of lower market rates. The affordability gap, where the median income is significantly less than what would be required to comfortably afford the market rate rent, suggests that many renters will be looking for subsidized options to make ends meet. As such, landlords who are willing to accept Section 8 vouchers might find themselves in a stronger position to secure long-term, stable tenancy.
The takeaway for landlords considering voucher versus cash-pay strategies in ZIP 61032 is clear. While cash-paying tenants offer immediate financial stability without the complexities of voucher administration, the high demand for affordable housing and the competitive nature of the rental market suggest that accepting vouchers can be a strategic advantage. It ensures a steady stream of income and reduces vacancy rates, albeit with slightly more administrative overhead. In essence, embracing voucher tenants can help landlords navigate the economic realities of Freeport, IL, and maintain a robust investment portfolio.
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.