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 | $1,220 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,620 | $221,784 | 0.73% | D |
| 3BR | $2,080 | $304,521 | 0.68% | D |
| 4BR | $2,290 | $395,214 | 0.58% | F |
| 5BR | $2,656 | $508,837 | 0.52% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 61525 (Dunlap, IL) presents a unique scenario for both landlords and small-portfolio investors. With a median home value set at $372,125, the area reflects a stable housing price environment. The fact that only 0.2% of listings have been reduced indicates a strong seller's market where homes are holding their value well, suggesting that pricing power remains firmly with the landlord and investor community.
The median days on market (DOM) being listed as N/A points towards an efficient local real estate market where properties sell quickly, often before reaching the typical DOM stage. This rapid turnover supports the idea that demand exceeds supply, further bolstering the case for maintaining or slightly increasing property values in the coming years.
On the rental side, the Federal Market Rent (FMR) for ZIP 61525 is projected at $1,280 for fiscal year 2024, while the current market rate stands at $1,240. This suggests a slight upward pressure on rents, aligning with the broader trend of rising costs. However, the gap between FMR and actual market rates is modest, indicating that the rental market is also relatively stable and not experiencing speculative increases.
For long-term investors, the data implies a realistic appreciation thesis based on gradual growth rather than explosive gains. The consistent home values and steady rental rates indicate a mature market where significant jumps in value are unlikely. Instead, the focus should be on steady income generation through rentals and conservative appreciation, which could be around the national average but without the volatility seen in more dynamic markets.
In summary, the combination of a high median home value, low listing reductions, and stable rental rates signals a market that is likely to remain resilient and steady. Investors can expect to maintain their pricing power and enjoy stable returns over the next 12-24 months, with appreciation tied more closely to inflationary pressures than speculative bubbles.
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.