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 | $910 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $130,767 | 0.93% | C |
| 3BR | $1,550 | $194,274 | 0.8% | D |
| 4BR | $1,710 | $296,940 | 0.58% | F |
| 5BR | $1,984 | $350,575 | 0.57% | F |
U.S. Census Bureau data (2024)
A skeptical investor might raise several concerns regarding investing in rental properties in ZIP 61523 (Chillicothe, IL), particularly related to the Fair Market Rent (FMR), renter demand, and the adequacy of voucher payments. Here's how the data addresses these concerns.
Will FMR $980 (zip FY 2024) cover the mortgage on a $178,736 home? The median home value in ZIP 61523 is approximately $151,600, which is notably below the $178,736 figure mentioned. Given the typical range of home prices, from $99,000 to $549,900, with a median sales price of $166,200, a $178,736 home would be considered above average. To determine if the FMR of $980 can cover the mortgage, we need to consider the current average mortgage rates. According to recent data, the average mortgage rate in the United States is around 5.5%, but specific rates for ZIP 61523 were not available. Assuming a similar rate, the monthly mortgage payment for a $178,736 home would likely exceed $980, especially considering property taxes and insurance. Therefore, relying solely on FMR to cover mortgage costs may not be sufficient without additional income sources.
Is there enough renter demand at 13.1%? The 13.1% of households renting in ZIP 61523 suggests a moderate level of demand. With 4,527 households, this translates to roughly 591 rental units. However, the data does not specify the total number of rental units available in the area, making it difficult to gauge the exact supply and demand balance. Nonetheless, the median age being higher than both the state and national averages indicates a potentially stable tenant base, which could be advantageous for long-term investments.
Will vouchers keep pace with $917 market rents? The FMR for ZIP 61523 is set at $980 for FY 2024, while the current market rent is around $927 per month. This suggests that the voucher system is close to covering market rents, though not exceeding them. However, whether vouchers will keep pace with future increases in market rents remains uncertain without specific data on voucher adjustments over time. The 5-year trend for home prices in ZIP 61523 shows a slight increase of 0.4%, indicating a relatively stable market. This stability may help predict future rent increases and thus inform expectations about voucher coverage.
The data provides a mixed picture for investment in ZIP 61523. While there is moderate demand and voucher coverage is nearly adequate, the FMR may not sufficiently cover mortgage expenses for a home valued at $178,736. Additional research into local mortgage rates and the total number of rental units would offer further clarity.
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.