Section 8 Fair Market Rent (FMR) for ZIP 61046 - 2027

Location: Carroll County, IL | Metro: Carroll County, IL

Investment Score for ZIP 61046

Monthly Rent (2BR)

$940

Median Price (2BR)

$197,793

1% Rule

0.48%

Annual Yield

5.7%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$760
1 Bedroom	$760
2 Bedrooms	$940
3 Bedrooms	$1,220
4 Bedrooms	$1,470
5 Bedrooms	$1,705
6 Bedrooms	$1,910
7 Bedrooms	$2,063
8 Bedrooms	$2,166

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$940	$197,793	0.48%	F
3BR	$1,220	$298,565	0.41%	F
4BR	$1,470	$465,841	0.32%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,794

Median Household Income

$79,398

Housing Units

1,959

Renter Percentage

13.6%

Occupancy Rate

64.9%

Renter Occupied

173

A decision tree for evaluating ZIP 61046 (Lanark, IL) for Section 8 investments starts with the Fair Market Rent (FMR) and mortgage debt service.

1) Does FMR of $920 clear debt service on a $316,831 property?

Yes, if you assume a conservative 80% loan-to-value ratio and a fixed-rate mortgage at 4.5%, the monthly payment would be approximately $1,400. The FMR of $920 covers the majority of the debt service but does not fully clear it. This means that landlords would need to cover the shortfall or seek additional income sources such as utilities or other fees. However, this is a critical point where landlords must weigh the financial viability against the administrative ease of Section 8.

2) Is market rent of $771 above, at, or below FMR?

If the answer is that market rent is below FMR, then there is an opportunity to leverage the higher FMR to attract Section 8 tenants.
In this case, the market rent of $771 is below the FMR of $920, indicating a potential for landlords to use the higher subsidy amount to their advantage.

3) Are 13.6% renters plus N/A-day days on market enough demand?

The percentage of renters at 13.6% suggests a moderate demand for rental properties. However, without specific data on the days on market (DOM), it's challenging to assess the speed at which properties are rented.
If the DOM is short, it indicates strong demand and could support a Section 8 investment. Conversely, a long DOM might suggest weaker demand and increased risk.

Given the information:

- The FMR of $920 does not fully cover the debt service of a $316,831 property, but it can still provide a stable income stream.

- Market rent being below FMR at $771 means that landlords can potentially benefit from the higher subsidy.

- With 13.6% of the population renting, there is a reasonable base of demand. However, the lack of specific DOM data makes it difficult to determine the exact rental market dynamics.

Based on these points, the decision to invest in Section 8 properties in ZIP 61046 depends on the landlord's tolerance for financial gaps and their assessment of the local rental market beyond the provided data. If they can manage the shortfall and see strong demand indicators, the answer is yes. Otherwise, it depends on further market analysis.

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.