Section 8 Fair Market Rent (FMR) for ZIP 61535 - 2027
Location: Peoria, IL | Metro: Peoria, IL MSA
Investment Score for ZIP 61535
N/A
Monthly Rent (2BR)
$1,190
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $900 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Investment Analysis by Bedroom Size
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms |
Monthly FMR |
Median Price |
1% Rule |
Grade |
| 3BR |
$1,530 |
$284,550 |
0.54% |
F |
| 4BR |
$1,680 |
$385,370 |
0.44% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$128,125
A skeptical investor considering ZIP 61535 might raise several concerns regarding the feasibility of investing in the area through the lens of Section 8 real estate. Let's delve into these concerns using the available data.
- Will FMR $950 (zip FY 2024) cover the mortgage on a $296,724 home? The Fair Market Rent (FMR) for ZIP 61535 in fiscal year 2024 is set at $950 per month. To determine if this will sufficiently cover the mortgage, we need to calculate the monthly mortgage payment based on typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly principal and interest payment on a $296,724 home would be approximately $1,550. This means that the FMR of $950 alone is insufficient to cover the mortgage. However, landlords can consider the potential for additional income sources such as co-pays from tenants, which could help bridge the gap.
- Is there enough renter demand at 1.9%? The rental vacancy rate for ZIP 61535 stands at 1.9%. While this figure suggests a strong rental market with high occupancy rates, it does not directly indicate the number of renters looking for housing. A low vacancy rate typically signals robust demand, but it is important to note that this percentage does not provide insight into the overall size of the rental market or the competition among landlords. To fully assess demand, one would need to analyze additional factors such as population growth trends and job market stability in the area.
- Will vouchers keep pace with N/A market rents? Unfortunately, the data provided does not include specifics on how voucher amounts compare to actual market rents in ZIP 61535. The Federal Housing Administration (FHA) periodically adjusts voucher amounts to reflect changes in the local housing market, but without current data on voucher levels and market rents, it is difficult to make a definitive statement. Landlords should monitor local HUD announcements and work closely with their local Public Housing Agency (PHA) to stay informed on any adjustments that may affect their properties.
The data reveals that while the rental market in ZIP 61535 appears strong, there are significant financial considerations that must be taken into account. Investors should carefully weigh the FMR against their mortgage costs and explore strategies to optimize profitability, such as seeking out homes with lower purchase prices or securing more favorable financing terms.
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.