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 | $940 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $162,448 | 0.76% | D |
| 3BR | $1,590 | $235,702 | 0.67% | D |
| 4BR | $1,750 | $315,338 | 0.55% | F |
U.S. Census Bureau data (2024)
The median household income in Hanna City, IL (ZIP 61536) is $74,249. At a market rate of $1,174 for rent, this represents approximately 16.3% of the annual median income. To put it into perspective, a household earning the median income would spend roughly $14,088 annually on rent at market rates, which is a significant portion of their income.
Comparatively, the Fair Market Rent (FMR) for ZIP 61536 in fiscal year 2024, as determined by HUD, is set at $860. This amount is considerably lower than the market rate, indicating that households receiving Section 8 vouchers would have a substantial financial advantage when seeking housing. A household relying on a voucher would pay only $10,320 annually, which is less than half of what they would spend at market rates.
The affordability gap between the market rate and the FMR has implications for landlord competition. With 21.6% of the 3,503 residents being renters, there are 755 potential rental units in the area. If a significant number of these renters are using Section 8 vouchers, landlords who accept vouchers will face increased competition among themselves but may also secure a steady stream of tenants. On the other hand, landlords who choose to focus on cash-paying tenants might find fewer applicants willing or able to meet the higher market rates.
For landlords considering whether to accept voucher tenants or pursue cash-paying strategies, the data suggests a clear trade-off. Accepting vouchers means lower rental income but potentially higher occupancy rates and stability. Opting for cash-paying tenants could mean higher rents but also a risk of vacancy due to the limited number of households capable of affording the market rate. Landlords should carefully consider their financial goals and the local rental market dynamics before deciding on their strategy.
A household earning the median income in Hanna City would struggle to afford the market rate rent of $1,174 per month, while those with Section 8 vouchers would find it easier to secure housing at the FMR of $860. The competition among landlords accepting vouchers is likely to be intense, given the financial relief it offers to tenants. For landlords, the decision to accept vouchers versus cash-paying tenants should be based on balancing income needs with the realities of the local rental market.
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.