Location: Fulton County, IL | Metro: Fulton 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 | $670 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $159,198 | 0.84% | C |
U.S. Census Bureau data (2024)
The potential risks for landlords investing in ZIP 61427 under the Section 8 program are notable. First, consider tenant turnover. The market rent stands at $869, just below the Fair Market Rent (FMR) of $870 for FY 2024, indicating that tenants might be attracted by slightly higher rents outside the Section 8 bracket. This can lead to frequent changes in occupancy, increasing administrative burdens and costs.
Vacancy exposure is another concern. With no available data on Days on Market (DOM), it's challenging to predict how long a property might remain vacant between tenants. This uncertainty can impact cash flow and overall profitability, especially if the property sits unoccupied for extended periods.
Deferred maintenance is also a significant risk. The typical home value in ZIP 61427 is $112,705, while the median income is $65,750. This suggests that homeowners might struggle to keep up with necessary repairs and maintenance, which could translate into higher costs for landlords to maintain properties to acceptable standards required by the Section 8 program.
However, these risks must be weighed against the high renter share of 17.2%. A substantial portion of the population renting rather than owning homes typically indicates a higher demand for rental properties, including those participating in the Section 8 voucher program. This can provide a steady stream of tenants and help mitigate some of the financial risks associated with vacancy and turnover.
In conclusion, the risks associated with Section 8 investments in ZIP 61427 are moderate due to the combination of manageable tenant turnover and vacancy exposure, balanced by a robust renter base and demand for subsidized housing. Landlords should be prepared for occasional vacancies and the need for timely maintenance to ensure compliance with program requirements.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.