Location: Fulton County, 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 | $690 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $86,200 | 1.09% | B |
| 3BR | $1,290 | $134,060 | 0.96% | C |
| 4BR | $1,310 | $166,317 | 0.79% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 61520 in Canton, IL, reveals a mixed picture when comparing the Fair Market Rent (FMR) to the market rent. Using the annualized 2BR FMR of $880 for FY 2024, the potential rental income would be $10,560 per year. Against the median home value of $100,656, this yields an implied gross yield of approximately 10.5%. The calculation is straightforward: divide the annual rental income by the median home value.
In contrast, using the Census ACS reported market rent of $770 for a 2BR unit, the annual rental income drops to $9,240. This translates into an implied gross yield of about 9.2% when compared to the median home value. These figures provide a clear benchmark for potential returns under both scenarios.
Given the 29.7% renter density in Canton, IL, it is evident that a significant portion of the population relies on rental housing, including subsidized options like Section 8. Additionally, the 33-day Days on Market (DOM) suggests a relatively quick turnover rate, which can be beneficial for maintaining consistent occupancy. However, the actual gross yield is likely to be closer to the market rent figure of $770 rather than the FMR of $880. Landlords should consider the market realities and the competition for tenants when setting expectations for their investment properties.
The lower gross yield based on market rent reflects the true economic conditions in Canton, IL, and is more realistic for most investors. While the FMR provides a higher theoretical income, it does not account for the practical challenges of securing and retaining Section 8 tenants. The difference between the two yields highlights the importance of understanding local market dynamics and the impact of subsidies on rental income.
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.