Section 8 Fair Market Rent (FMR) for ZIP 61265 - 2027

Investment Score for ZIP 61265

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$780
1 Bedroom	$850
2 Bedrooms	$1,050
3 Bedrooms	$1,390
4 Bedrooms	$1,690
5 Bedrooms	$1,960
6 Bedrooms	$2,195
7 Bedrooms	$2,371
8 Bedrooms	$2,490

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$850	$78,626	1.08%	B
2BR	$1,050	$120,791	0.87%	C
3BR	$1,390	$155,445	0.89%	C
4BR	$1,690	$194,987	0.87%	C
5BR	$1,960	$241,427	0.81%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 61265 (Moline, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 61265 is set by HUD for 2026. For a two-bedroom apartment, the FMR is $1150, which represents approximately 20.6% of the median household income of $66,933. This suggests that while the rent is relatively affordable compared to the median income, it still poses a significant financial burden on low-income households. To understand how FMR compares to actual rents, we need to consider the occupancy rate and the percentage of renters. With an occupancy rate of 93.6%, the housing market is quite tight, indicating that there is strong demand for rental units. The 32.3% renter population also implies a substantial number of individuals who rely on rental properties, including those who might use Section 8 vouchers. However, the actual rents in Moline could be higher than the FMR. The Zillow median price for a two-bedroom home is $115,464, which translates into a monthly mortgage payment of around $577 if financed over 30 years at a 4% interest rate. When adding property taxes, insurance, and maintenance costs, the total cost can easily exceed the FMR. Therefore, voucher holders face constraints in finding units that accept their vouchers and are within the FMR limits. #### Affordability & Renter Profile Given the median household income of $66,933, the affordability of housing is a critical issue. A two-bedroom apartment priced at $1150 per month consumes a significant portion of the median income, leaving little room for other expenses. This makes it challenging for low-income households to afford decent housing without assistance. The tight market conditions, with an occupancy rate of 93.6%, suggest that there is a high demand for rental units. However, the price-to-FMR ratio of 8.4x indicates that the median home price is much higher than the rent for a similar-sized unit. This discrepancy means that homeownership is less accessible for many residents, pushing them towards the rental market. The renter profile in Moline is diverse but heavily weighted towards lower-income individuals who may require rental assistance. The 32.3% renter population includes families and individuals who may be eligible for Section 8 vouchers. Given the high cost of living relative to income, these residents likely struggle to find affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 61265 presents both opportunities and challenges. The FMR for a two-bedroom apartment is $1150, which is a key benchmark for determining the maximum allowable rent for Section 8 voucher holders. However, the actual rents in the area could be higher due to the tight market conditions and the high demand for rental units. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the potential rental income versus the cost of ownership. If an investor purchases a two-bedroom home for the Zillow median price of $115,464, the monthly mortgage payment would be around $577, assuming a 4% interest rate over 30 years. Adding property taxes (estimated at $1,000 annually), insurance ($1,200 annually), and maintenance costs ($100 per month), the total monthly cost would be approximately $807. At the FMR of $1150, the investor would have a positive cash flow of about $343 per month before considering any appreciation in property value. The investment grade for this ZIP code would be moderate to good, given the strong demand for rental units and the relatively high occupancy rate. However, the challenge lies in finding units that are willing to accept Section 8 vouchers, as landlords often prefer higher-paying tenants. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should target properties that can be rented below the FMR to ensure they attract Section 8 voucher holders. For example, a two-bedroom apartment priced at $1050 per month would provide a positive cash flow of $243 per month, making it a viable investment option. 2. **Consider Multi-Family Properties**: Given the high demand for rental units, multi-family properties could offer better returns. A two-bedroom unit in a multi-family complex might command a slightly higher rent, say $1200, which is still within the FMR limit for a three-bedroom unit. This would result in a positive cash flow of $393 per month, enhancing the overall profitability of the investment. 3. **Engage with Local Housing Authorities**: To increase the likelihood of securing Section 8 tenants, investors should engage with local housing authorities. Understanding the specific requirements and processes for accepting vouchers can help streamline the leasing process and reduce vacancy rates. #### Bottom Line For Section 8-focused investors, the ZIP code 61265 offers a moderate to good investment opportunity. The strong demand for rental units and the high occupancy rate indicate a robust market. However, the challenge of finding units that accept Section 8 vouchers and the need to keep rents within FMR limits must be carefully managed. Based on the provided data, the recommendation is to **Hold** or **Buy**, particularly if you can secure properties below the FMR or engage effectively with local housing authorities. The positive cash flow potential and the strong rental market make this ZIP code a worthwhile consideration for investors looking to capitalize on the needs of low-income households.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.