Location: Ogle County, 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 | $760 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $830 | $68,296 | 1.22% | A |
| 2BR | $1,090 | $105,345 | 1.03% | B |
| 3BR | $1,430 | $219,123 | 0.65% | D |
| 4BR | $1,470 | $252,197 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 61109, located in Rockford, Illinois, presents an interesting scenario when analyzing rental affordability from a renter’s standpoint. The median income here stands at $62,973, which is a critical figure for understanding the financial capacity of households. Considering the market rate for rentals, known as the Zillow Observed Rent Index (ZORI), at $1,169 per month, it becomes evident that a significant portion of the population faces challenges in affording market-rate housing.
To put this into perspective, let’s compare the market rate to the federal payment standard for Section 8 vouchers, which is set at $1,010 for ZIP 61109 in fiscal year 2024. This means that a household receiving a Section 8 voucher would pay approximately 30% of their adjusted income towards rent, with the government covering the rest up to the FMR limit. At the median income level, the difference between the ZORI and the FMR is substantial, indicating a clear affordability gap for many residents.
With 35.8% of the population being renters and a total population of 26,768, the competition among landlords is likely to be fierce. The affordability gap suggests that a significant number of tenants may prefer or require the stability and cost-effectiveness of Section 8 vouchers over paying the market rate. This dynamic could influence the types of tenants landlords attract and the overall demand for subsidized housing.
The takeaway for landlords considering their strategy regarding voucher versus cash-paying tenants is clear: given the affordability gap, there is a strong likelihood that a considerable portion of the rental market will rely on Section 8 vouchers. Landlords who are willing to participate in the voucher program can tap into a stable source of rental income, albeit at a lower rate compared to market rents. Those who choose to focus solely on cash-paying tenants must be prepared to compete in a market where many potential renters cannot afford the higher rates without assistance.
In conclusion, the landscape in ZIP 61109 highlights the importance of understanding the local economic conditions and tenant preferences. Landlords should weigh the benefits of participating in the Section 8 program against the potential for attracting cash-paying tenants, keeping in mind the financial realities faced by the majority of the population.
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.