Location: Davenport-Moline-Rock Island, IA | Metro: Davenport-Moline-Rock Island, IA-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 | $780 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $840 | $72,124 | 1.16% | B |
| 2BR | $1,040 | $113,902 | 0.91% | C |
| 3BR | $1,370 | $155,604 | 0.88% | C |
| 4BR | $1,670 | $189,778 | 0.88% | C |
| 5BR | $1,937 | $201,697 | 0.96% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 61201, located in Rock Island, IL, within the Davenport-Moline-Rock Island, IA-IL MSA, reveals several key points for landlords and small-portfolio investors.
The rent math does not work favorably for government-subsidized housing. The Fair Market Rent (FMR) set at $930 for fiscal year 2024 is significantly lower than the market rent, which stands at $1,182 according to ZORI. This means that landlords who participate in Section 8 will receive less rent compared to the market rate, resulting in a financial disadvantage.
Acquisition in this area is relatively affordable. With a median home value of $122,228, it represents a low barrier to entry for potential property acquisitions. Additionally, the average days on market (DOM) of 29 days indicates a brisk pace in the real estate market, suggesting that properties are selling quickly once listed. The low price-cut share of 0.2% further supports the notion that homes are likely being priced appropriately, reducing the need for significant price adjustments to attract buyers.
Tenant demand is robust in ZIP 61201. The total population of 36,766 residents, with 35.5% being renters, ensures a steady pool of potential tenants. This high renter share suggests a strong preference for renting over owning, making it an attractive location for landlords looking to fill vacancies without much difficulty.
Verdict: While the rent math for Section 8 participants is unfavorable due to the disparity between FMR and market rents, the area offers affordable acquisition opportunities and a solid tenant base. Landlords should consider the financial implications of participating in Section 8 and weigh them against the benefits of quick sales and a high renter population. For those willing to operate outside of government subsidies, ZIP 61201 presents a viable investment opportunity.
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.