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 | $1,030 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $188,214 | 0.79% | D |
| 3BR | $1,950 | $262,005 | 0.74% | D |
| 4BR | $1,990 | $336,523 | 0.59% | F |
| 5BR | $2,308 | $395,349 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 61114 in Rockford, IL, presents a unique balance between yield and stability for real-estate investors. With a Fair Market Rent (FMR) of $1250 for the fiscal year 2024, it sits slightly below the market rent of $1,288, indicating a modest potential for rental income that aligns closely with local market conditions. The median home value in this area is $264,476, which, when compared to the FMR, suggests a reasonable yield but not an exceptionally high one.
The stability of the market in ZIP 61114 can be gauged by the percentage of renters at 28.9%, which is relatively low and implies a smaller pool of potential tenants. Additionally, the median household income of $85,568 provides insight into the financial capacity of residents to pay rent. However, the lack of data on days on market (DOM) makes it challenging to fully assess the turnover rate and stability of rentals.
To classify this market, we must consider both yield and stability. The yield, driven by the FMR and market rent figures, indicates a competitive but not overly lucrative opportunity. Stability, however, is somewhat compromised due to the lower percentage of renters and the absence of DOM data. Given these factors, ZIP 61114 leans more towards being a steady-cashflow zone. The slight discrepancy between FMR and market rent suggests that while there is room for negotiation, it's not significant enough to classify this as a high-yield market. The moderate income levels and home values support a consistent but not explosive growth scenario.
Investors should focus on properties that offer good value and are likely to attract stable tenants given the local economic context. This classification helps guide expectations towards reliable, though not extraordinarily high, returns on investment.
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.