Location: Stephenson County, IL | Metro: Carroll 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 | $730 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $138,992 | 0.73% | D |
| 3BR | $1,230 | $178,348 | 0.69% | D |
| 4BR | $1,450 | $196,792 | 0.74% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 61078, Shannon, IL, is set at $960 for the fiscal year 2026. This figure represents the payment standard for landlords participating in the Section 8 Housing Choice Voucher program, which is not the same as the actual rent paid by tenants. Instead, it's the maximum amount that the government will pay toward a tenant's rent.
In comparison, the average rent in Shannon, IL, based on Census American Community Survey (ACS) data, is $715. This means that while the FMR sets a higher benchmark for reimbursement, the typical market rent might be lower. Landlords should consider setting their rent between these two figures to ensure they're competitive but also receiving fair compensation.
With a renter share of 13.0%, there is a moderate demand for rental properties in the area. This percentage indicates that a significant portion of the population relies on renting their homes, providing a steady pool of potential tenants for your property.
The median home value in ZIP 61078 is approximately $174,396. This figure gives you an idea of the typical acquisition cost for a home in this area if you're looking to purchase a property for your Section 8 rental portfolio. It's important to note that the final price could vary depending on the condition and size of the property.
Before proceeding with your first Section 8 rental in Shannon, IL, you must verify that your property meets the minimum housing quality standards, known as the Housing Quality Standards (HQS). These standards ensure that the property is safe and livable for tenants, and failing to meet them can result in penalties or disqualification from the program.
To summarize, the FMR of $960 is the reimbursement ceiling, while the local average rent of $715 provides a baseline for pricing. With a 13.0% renter share, there is a reasonable demand for rentals, and the median home value of $174,396 offers insight into potential acquisition costs. Ensure your property meets HQS requirements to avoid issues and maximize your chances of success in the Section 8 program.
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.