Location: Rockford, 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 | $1,230 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,760 | $206,242 | 0.85% | C |
| 3BR | $2,320 | $265,375 | 0.87% | C |
| 4BR | $2,370 | $324,520 | 0.73% | D |
| 5BR | $2,749 | $351,273 | 0.78% | D |
U.S. Census Bureau data (2024)
The ZIP code 61065, located in Poplar Grove, IL, presents an interesting scenario when viewed from the perspective of renters. The median household income here stands at $97,386, which places it well above the national average. However, the question remains whether this income level is sufficient to cover the market rate rent of $1,452 per month, as reported by the Census ACS.
To put this into context, consider the Federal Market Rent (FMR) standard set for ZIP 61065 for fiscal year 2024, which is $1,550. This figure represents the maximum amount that a housing voucher can be used to pay for rent and utilities, indicating that even with a voucher, the cost of renting could still be quite high relative to the median income.
The affordability gap becomes apparent when comparing the median income to both the market rate and the voucher payment standard. A household earning the median income would spend approximately 30% of their monthly income on market rate rent, assuming no other significant financial obligations. This leaves little room for other expenses, such as food, transportation, healthcare, and savings. The situation is slightly less dire with a voucher, but the FMR is only marginally lower than the market rate, suggesting that the gap between what renters can afford and what they must pay is minimal.
Given that only 7.4% of the 10,570 population are renters, competition among landlords is likely to be fierce for those few rental units. The scarcity of renters means that landlords must be strategic in how they position their properties to attract tenants, especially those relying on housing vouchers.
For landlords considering their strategy between accepting voucher tenants versus cash-paying ones, the key takeaway is that while the demand for rental properties is low, the income levels of potential tenants are relatively high. This suggests that there might be a segment of the market willing to pay cash rates, but the number of such households is limited. Accepting voucher tenants can help fill vacancies, though landlords should be aware that the administrative process can be more complex compared to dealing with cash-paying tenants. Nonetheless, given the tight affordability gap, vouchers represent a viable option for securing stable tenancy and maintaining occupancy rates.
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.