Location: Peoria, IL | Metro: Peoria, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 61426 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $850. However, the current market rent is not available, which makes it challenging to provide a precise percentage gap or to fully assess the implications of this disparity for landlords and small-portfolio investors.
In the absence of specific market rent data, we can still infer some critical points about the viability of Section 8 properties in this area. The FMR figure of $850 represents the maximum amount that the federal government will pay landlords who accept housing choice vouchers. If the market rent is indeed higher than $850, landlords accepting voucher tenants would be receiving less than what they could potentially charge on the open market. This scenario would imply an opportunity cost for landlords, as they might be foregoing higher rents to participate in the Section 8 program.
On the other hand, if the market rent were lower than $850, which is unlikely given the typical dynamics of rental markets, landlords could actually see a yield advantage. In such a case, the guaranteed payment from the voucher program would exceed the prevailing market rates, providing a steady and predictable income stream.
The context of ZIP 61426 further complicates the analysis. With 0.0% of residents identified as renters, the area likely has a predominantly owner-occupied housing stock, suggesting limited demand for rental properties. Additionally, the lack of data on median home value and median income means we cannot fully gauge the economic landscape of the area. These missing pieces of information are crucial for understanding whether the FMR of $850 is a realistic benchmark for the local rental market.
To conclude, while the FMR of $850 provides a clear guideline for landlords participating in the Section 8 program, the absence of current market rent data prevents a comprehensive assessment of the financial impact. Landlords must weigh the benefits of stable, government-backed rental income against the potential for higher yields in a market where rental demand is minimal. Without concrete market rent figures, it's impossible to determine the exact dollar and percentage gap, but the analysis underscores the importance of considering both the local rental market dynamics and the broader economic context when evaluating the profitability of Section 8 properties in ZIP 61426.
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.