Location: Knox 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 | $700 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $98,981 | 1.01% | B |
| 3BR | $1,390 | $141,214 | 0.98% | C |
U.S. Census Bureau data (2024)
The Section 8 housing market analysis for ZIP 61531 in Farmington, IL reveals several key points for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for FY 2024 is set at $960, which is slightly above the market rent of $931 as reported by the Census ACS. This indicates that voucher tenants will generally cashflow at the FMR level, though the margin is narrow.
The median home value in ZIP 61531 is $113,572, leading to a rent-to-price ratio of approximately 1.02%. This ratio suggests that the rental market is relatively stable compared to the home purchase market, making it a good option for those looking to avoid the risks associated with fluctuating home values.
Data from various sources shows that the real estate market in Farmington is somewhat discounted, with home prices ranging from $23,500 to $173,500. However, the median sales price is $121,625.69, indicating that while there may be some distressed properties available, the overall market remains steady.
The median Days on Market (DOM) and percentage of price cuts are not directly available, but given the steady median sales price and the slight premium of FMR over market rent, the rent-versus-buy dynamics do not significantly impact the investment decision. Instead, the focus should remain on the rental market stability and the cashflow potential offered by the HUD FMR.
The strongest investor angle in ZIP 61531 is likely cashflow. Given the HUD FMR slightly exceeds the market rent, landlords can expect to maintain positive cashflow positions, particularly with premium units that can command rents closer to the higher end of the market range.
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.