Location: Whiteside County, IL | Metro: Whiteside County, IL
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 | $980 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,740 | $149,576 | 1.16% | B |
U.S. Census Bureau data (2024)
The ZIP code 61261 presents several challenges for potential Section 8 landlords. Firstly, the tenant turnover rate can be problematic due to the disparity between the market rent and the Fair Market Rent (FMR) of $1,290 for fiscal year 2026 in the metropolitan area. This difference may lead to tenants seeking more affordable housing options, increasing turnover and associated costs.
Vacancy exposure is another significant concern. With an average of N/A days on the market (DOM), it is unclear how quickly properties can be rented out, potentially leading to periods of non-income generation. The uncertainty around DOM makes it difficult to predict rental stability accurately.
The risk of deferred maintenance is also notable. Given the typical home value of $109,987 and a median income of $64,375, there might be limited financial resources available for timely repairs and upkeep. This situation could result in higher maintenance costs over time, affecting the profitability of the investment.
However, these risks must be weighed against the high concentration of renters in the area, which stands at 10.7%. High renter density often correlates with increased demand for Section 8 vouchers, providing a steady stream of eligible tenants. This factor can mitigate some of the risks associated with vacancy and turnover.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 61261 is moderate. While there are significant challenges related to tenant turnover and maintenance, the high renter density offers a substantial counterbalance.
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.