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 | $770 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $125,918 | 0.88% | C |
| 3BR | $1,460 | $151,847 | 0.96% | C |
| 4BR | $1,490 | $180,867 | 0.82% | C |
| 5BR | $1,728 | $241,628 | 0.72% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 61103, located in Rockford, IL, within Winnebago County, operate based on specific financial metrics. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $980. This SAFMR figure is crucial because it represents the maximum amount that the Housing Choice Voucher program will pay towards the rent for a unit of this size.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), is currently $1,132 for a two-bedroom property in ZIP 61103. This indicates that the market rent exceeds the SAFMR by $152 per month.
A landlord participating in the Section 8 program receives payments directly from the government, which are calculated based on the SAFMR minus the tenant's portion of the rent. The tenant's portion is generally 30% of their adjusted income, but it cannot be less than the minimum tenant payment set by the local housing authority. In ZIP 61103, the SAFMR is the benchmark for the voucher reimbursement.
To illustrate, if the market rent for a two-bedroom apartment is $1,132, and the SAFMR is $980, the voucher would cover up to $980 of that amount. The tenant is responsible for the remaining balance, which is $152 in this case. Additionally, utility allowances are provided separately and do not affect the base rent calculation. These allowances can vary but are intended to help cover the costs of utilities not included in the rent.
The SAFMR being set specifically for ZIP 61103 means that it reflects the rental conditions unique to this area, potentially offering a more accurate representation of the local housing market compared to broader regional averages.
In summary, for a two-bedroom apartment in ZIP 61103, landlords can expect the Section 8 voucher to cover up to $980 of the monthly rent, leaving a gap of $152 between the voucher reimbursement and the local market rent of $1,132. This gap must be covered by the tenant, making it important for landlords to ensure that tenants meet the income requirements to afford their share of the rent.
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.