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 | $730 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $105,611 | 1% | B |
| 3BR | $1,400 | $119,491 | 1.17% | B |
| 4BR | $1,440 | $127,565 | 1.13% | B |
U.S. Census Bureau data (2024)
ZIP 61104, located in Rockford, IL, within the Rockford, IL MSA metro area, serves as a strong cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 61104 in fiscal year 2024 is set at $910, which is notably lower than the market rent of $1,152. This $242 difference per month represents a significant cushion against potential rental arrears, ensuring that landlords receive a steady income even if there are delays in government payments.
The median home value in ZIP 61104 is $107,594, indicating that property acquisition costs are relatively low compared to other markets. This makes it easier for landlords to maintain positive cash flow, especially when considering the lower maintenance costs typically associated with less expensive properties. Furthermore, the low median income of $33,772 aligns well with the affordability of Section 8 housing, ensuring a consistent demand for rental units within the program.
While the 0.2% price-cut share and the N/A-day Days on Market (DOM) suggest limited potential for appreciation, the primary focus should be on the reliable cash flow that this ZIP code offers. The 62.2% renter share further supports the idea that this area is well-suited for rental investments, particularly those aimed at providing affordable housing options.
In summary, ZIP 61104 is best categorized as a cash-flow anchor due to the substantial gap between the FMR and market rent, along with the relatively low median home value. These factors ensure that landlords can rely on stable income streams while minimizing the risks associated with property ownership and management.
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.