Location: La Salle County, IL | Metro: Peoria, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 61358 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for FY 2024 is set at $840, while the Census ACS data indicates that the market rent stands at $875. This means there is a $35 difference, or approximately a 4.1% gap, between what landlords can charge voucher tenants and what they could potentially earn from open-market tenants.
Given that the FMR is lower than the market rent, landlords should be aware of the financial implications when choosing to accept Section 8 vouchers. While voucher tenants provide a stable source of income, they also mean a reduction in potential rental revenue. For every unit rented through the Section 8 program, landlords will receive $35 less per month compared to renting it at market rates. Over a year, this amounts to $420 in lost revenue per unit. This discrepancy is particularly important in a context where only 5.5% of the population are renters, suggesting a smaller pool of potential tenants and a competitive rental market.
The median income in ZIP 61358 is $88,393, which provides some insight into the economic profile of the area. However, the median home value being listed as N/A indicates that homeownership data might not be fully representative or available. This combination of factors suggests that landlords in 61358 must carefully consider the trade-offs between accepting Section 8 vouchers and renting units at market rates. While the stability offered by voucher tenants can be attractive, especially in a low-renter environment, the cost of renting below market rates must be weighed against the potential for higher yields from non-voucher tenants.
To summarize, the FMR of $840 is $35 or 4.1% below the market rent of $875. Landlords in ZIP 61358 should be mindful of this gap and the broader economic context when deciding whether to participate in the Section 8 program or seek higher yields from the open market.
Data Sources: FMR data from HUD (2027). 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.