Location: Stephenson County, IL | Metro: Jo Daviess County, IL
| 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 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 61087 are defined by the Section 8 Housing Payment Standard for the Area (SAFMR), which sets the maximum amount that the program will pay for a two-bedroom rental unit at $920 per month for fiscal year 2026. This figure represents the total amount the government is willing to contribute towards rent, but it's important to understand how this payment is structured.
The local market rent for a two-bedroom unit in ZIP 61087 is lower at $750 per month, according to the latest Census American Community Survey (ACS) data. However, the SAFMR of $920 is specifically tailored to this ZIP code, reflecting the unique cost structure and rental market dynamics here.
A Section 8 voucher works by covering the difference between the tenant’s portion of the rent and the total rent charged by the landlord. For ZIP 61087, the tenant is expected to pay 30% of their income towards rent. If the tenant's income is $1,000 per month, they would pay $300 toward rent. The remaining balance is covered by the voucher up to the SAFMR limit. In this case, the voucher would cover the rest, up to a maximum of $920.
Additionally, there are utility allowances that vary by region and can affect the total reimbursement. For ZIP 61087, these allowances are included in the $920 figure. Landlords should note that the actual reimbursement can be less if the tenant’s portion plus the utility allowance exceeds the $920 limit.
To illustrate, let's assume a tenant with an income of $1,200 per month. They would pay 30% of their income, which is $360, towards rent. The voucher would then cover the remainder up to the SAFMR limit of $920. Thus, the landlord would receive a total of $920, with the tenant contributing $360 and the government covering the rest.
In ZIP 61087, where the average market rent is $750, landlords can expect a surplus when renting to a Section 8 tenant. The typical surplus for a two-bedroom unit is $170 per month, calculated as the difference between the SAFMR of $920 and the local market rent of $750.
This economic structure ensures that landlords are paid at least the market rate for their properties, and often more, making Section 8 vouchers a reliable source of income for rental units in ZIP 61087. It also helps maintain a steady stream of tenants who can afford to live in the area.
Data Sources: FMR data from HUD (2027). 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.