Location: Peoria, IL | Metro: Peoria, IL MSA
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 | $780 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,320 | $247,132 | 0.53% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 61375 within the Peoria, IL MSA reveals several key points for landlords and small-portfolio investors. First, regarding the rent math, the Fair Market Rent (FMR) set at $890 for fiscal year 2024 contrasts with the actual market rent of $833 based on Census ACS data. This indicates that landlords can expect to charge slightly above the market rate if they align their rental prices with the FMR guidelines.
Second, the acquisition cost is relatively low, with a median home value of $198,132. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts suggests that while the initial purchase may be affordable, there could be challenges in turning over properties quickly or without adjustments to the asking price.
Third, the tenant demand in ZIP 61375 is limited. With a total population of 989 and only 7.0% of residents being renters, the pool of potential tenants is quite small. This could lead to difficulties in filling vacancies and maintaining steady occupancy rates.
Verdict: While the rent math works in favor of landlords who can charge above the market rate, the overall attractiveness of ZIP 61375 is diminished by low tenant demand and uncertain market dynamics related to property turnover. The median home value of $198,132 makes acquisition affordable, but the limited renter base of 7.0% of the 989 population means that landlords should proceed with caution and consider diversifying their investment portfolios across different areas to mitigate risk.
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.