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 | $890 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,530 | $215,032 | 0.71% | D |
U.S. Census Bureau data (2024)
The ZIP code 61047, located in Stephenson County, IL, offers a strategic opportunity for inclusion in a Section 8 portfolio. Given the financial metrics available, this area serves best as a cash-flow anchor. The Federal Market Rent (FMR) for ZIP 61047 in fiscal year 2024 is set at $1020, which exceeds the current market rent of $764. This creates a positive spread that ensures landlords receive higher rental income compared to the local market average, thereby stabilizing cash flow.
The median home value in ZIP 61047 stands at $223,349, indicating that while property values are not extraordinarily high, they are also not particularly low. This suggests that the area is relatively stable and unlikely to experience significant appreciation in the near future. Therefore, it cannot be considered an appreciation play where rapid increases in property value would be expected.
ZIP 61047 has an 8.3% renter share, which is modest. However, the median income in the area is $86,056, providing a solid economic foundation for the housing market. While this ZIP code can contribute to diversifying a portfolio due to its mix of owner-occupied and rental properties, the primary benefit remains its role as a cash-flow anchor given the favorable FMR to market rent ratio.
In summary, ZIP 61047 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The guaranteed income through Section 8 vouchers at a rate above the local market average ensures steady and reliable returns for landlords and small-portfolio investors. This makes it a valuable component for those seeking consistent cash flow rather than speculative appreciation.
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.