Location: La Salle County, IL | Metro: La Salle 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 | $750 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $165,209 | 0.65% | D |
| 3BR | $1,390 | $218,779 | 0.64% | D |
| 4BR | $1,720 | $299,740 | 0.57% | F |
| 5BR | $1,995 | $356,548 | 0.56% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 61350, which includes Ottawa, IL, and parts of La Salle County, offers a detailed analysis for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area, set at $1,130 for the fiscal year 2026, falls below the current market rent of $1,322 as indicated by Zillow's ZORI index. This means that voucher tenants will only cashflow in this market with premium units, as the FMR does not cover the average market rent.
To further understand the investment potential, consider the median home value in the area, which stands at $205,358. This figure allows us to derive a rent-to-price ratio, providing insight into the local real estate market dynamics. With an average monthly rent of $1,322, the annual rent would be approximately $15,864, leading to a rent-to-price ratio of about 7.7%. This ratio suggests that rental income can provide a reasonable return on investment relative to property values.
The market conditions also reveal quick sales and minimal price adjustments, with a median Days on Market (DOM) of just 9 days and only 0.2% of listings experiencing price cuts. These metrics indicate a strong rental market where properties are in demand, supporting the viability of holding rental properties over the long term.
In summary, while voucher tenants will only cashflow with premium units due to the disparity between the HUD FMR and market rents, the overall market presents a favorable environment for investors seeking stability and a solid rent-to-price ratio. The strongest investor angle in this market is stability, given the quick sale times and low rate of price reductions.
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.