Location: Bureau County, IL | Metro: Bureau 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 | $810 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $111,979 | 1.04% | B |
| 3BR | $1,440 | $174,251 | 0.83% | C |
U.S. Census Bureau data (2024)
In evaluating ZIP 61362, Spring Valley, IL, for Section 8 investment opportunities, several key concerns arise that need addressing based on the available data.
The first objection is whether the Fair Market Rent (FMR) of $1,190 for the metro area in fiscal year 2026 will sufficiently cover the mortgage payments on a home valued at $138,928. To determine this, we must consider the typical mortgage rates and terms. Assuming a conventional 30-year fixed-rate mortgage at an average rate of 5%, the monthly principal and interest payment on a $138,928 home would be approximately $750. With property taxes and insurance factored in, let's estimate these additional costs at around $300 per month. This brings the total monthly mortgage-related expenses to about $1,050. Given the FMR of $1,190, it's evident that the rental income would indeed cover the mortgage, leaving a buffer of $140 per month for other expenses such as maintenance and utilities.
A second concern is the level of renter demand in Spring Valley, with only 33.5% of the housing units being rented. This percentage suggests that while there is a substantial owner-occupied market, the rental market is still significant. However, it's important to note that the data does not provide a detailed breakdown of the types of renters or their financial stability. It also doesn't specify if there are any trends indicating growth or decline in the rental sector. Despite this, the presence of a notable rental population indicates some demand for affordable housing options, which could be met through Section 8 properties.
The third objection pertains to the adequacy of voucher amounts to keep pace with market rents of $917. The FMR of $1,190 is higher than the current market rent, suggesting that voucher holders could potentially afford homes above the average market price. However, the data does not provide specifics on the exact voucher amounts or how they fluctuate over time. Generally, voucher amounts are adjusted annually based on local housing conditions and inflation rates, so it's reasonable to expect that they will continue to align with market rents. Nonetheless, without precise figures on annual adjustments, we cannot definitively state how well vouchers will keep up with increasing rents.
To summarize, while the FMR of $1,190 can comfortably cover the mortgage on a $138,928 home, the data on renter demand and voucher amounts is less conclusive. The rental market represents a sizeable portion of the housing stock, but trends and the financial health of potential tenants are unknown. Vouchers are likely to remain competitive with market rents, though their exact values and adjustments over time are not specified. These insights should guide investors in making informed decisions about Section 8 investments in Spring Valley, IL.
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.