Location: Jo Daviess County, IL | Metro: Jo Daviess 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 | $760 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,290 | $333,277 | 0.39% | F |
| 4BR | $1,300 | $441,277 | 0.29% | F |
U.S. Census Bureau data (2024)
The Section 8 real estate market in ZIP 61036, located in Jo Daviess County, IL, presents a nuanced opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the metro area, effective in fiscal year 2026, is set at $930 per month for a two-bedroom unit. This figure is notably higher than the market rent reported by the Census Bureau's American Community Survey (ACS), which stands at $831 per month. As such, voucher tenants will generally cashflow at the FMR rate, providing a stable income source for property owners.
To further contextualize these figures, consider the median home value in the area, which is $305,810. Using this, we can calculate a rent-to-price ratio of approximately 0.27%, indicating that rents are relatively low compared to home values. This suggests that the area may be more attractive for renters than buyers, given the current economic landscape.
The median days on market (DOM) for homes in ZIP 61036 is 57 days, which is a reasonable timeframe that does not suggest an oversupply of homes. Additionally, the share of homes that require price cuts is very low at just 0.1%. These factors indicate that the housing market is relatively stable, with little pressure on property values.
In conclusion, the strongest angle for real estate investors in ZIP 61036 is likely cashflow. The disparity between the HUD FMR and the actual market rent ensures that voucher tenants can cover their rent, providing a steady stream of income without the need for premium units. This makes Section 8 properties particularly appealing for those seeking consistent returns in a stable market environment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.