Location: Bureau County, IL | Metro: Peoria, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 61537 revolves around the disparity between the Fair Market Rent (FMR) set at $810 per month for fiscal year 2024 and the actual market rent of $685 per month, based on the latest Census ACS data. This creates a gap of $125, or approximately 18.5%, which significantly favors landlords who can participate in the Section 8 program.
In this scenario where the FMR exceeds the market rent, landlords can leverage the Section 8 vouchers to secure higher yields on their rental properties. By renting to voucher holders, landlords receive a payment that is closer to the FMR rather than the lower market rate. This means they can potentially earn an additional $125 per unit per month, enhancing profitability.
The ZIP code's demographic context further supports this thesis. With 25.7% of residents being renters and a median home value of $119,205, there is a notable segment of the population seeking affordable housing options. The median income in the area stands at $67,404, indicating that many residents may rely on government assistance to afford housing. This makes Section 8 vouchers particularly attractive for those looking to find a place to live.
Landlords should be aware of the administrative requirements associated with participating in the Section 8 program. While the financial benefits are clear, the process involves regular inspections and adherence to housing quality standards. Despite these considerations, the potential for increased cash flow makes it a worthwhile investment for property owners in ZIP 61537.
Data Sources: FMR data from HUD (2027). 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.