Section 8 Fair Market Rent (FMR) for ZIP 61541 - 2027

Location: Peoria, IL | Metro: Peoria, IL MSA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,000
1 Bedroom	$1,050
2 Bedrooms	$1,330
3 Bedrooms	$1,710
4 Bedrooms	$1,880
5 Bedrooms	$2,181
6 Bedrooms	$2,443
7 Bedrooms	$2,638
8 Bedrooms	$2,770

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

Median Household Income

$41,875

Housing Units

Renter Percentage

32.1%

Occupancy Rate

81.5%

Renter Occupied

A landlord considering ZIP 61541 for Section 8 investments must follow a structured decision-making process. The first question to address is whether the Fair Market Rent (FMR) of $890 for the fiscal year 2024 can cover the debt service on a property. Given that the median home value is not specified (N/A), it's challenging to determine the exact debt service. However, if we assume a typical mortgage scenario, landlords should calculate their total monthly mortgage payments, including principal, interest, taxes, and insurance. If these costs are less than or equal to $890, then the answer is yes; otherwise, no.

The second question is to compare the market rent of $1,014 (from Census ACS data) with the FMR. In this case, the market rent is higher than the FMR, indicating that properties rented out through Section 8 may be priced below the local market. This suggests that landlords should consider the potential for higher rents outside of Section 8 programs, which could provide better financial returns.

The third question involves assessing the rental demand. With 32.1% of residents being renters, there is a notable portion of the population seeking rental housing. Additionally, the days on market (DOM) data is not provided (N/A), making it difficult to gauge how quickly properties are typically leased. However, assuming the DOM is reasonable, the high percentage of renters supports a positive outlook on demand. If the DOM is long, it might indicate slower leasing times, suggesting that demand is lower and landlords should proceed with caution.

If the FMR of $890 clears debt service and market rent is significantly higher, landlords should explore opportunities beyond Section 8 to maximize returns.
If the FMR does not cover debt service, investing in Section 8 properties in ZIP 61541 is not advisable.
If demand is strong, as indicated by a short DOM, then the high renter percentage supports a positive investment environment for Section 8 properties.
If demand is weak, as evidenced by a long DOM, then landlords should look into other areas or consider non-Section 8 investments to ensure quicker occupancy and higher rental income.

In conclusion, the decision to invest in ZIP 61541 for Section 8 properties hinges on the ability of FMR to cover debt service, the comparison between FMR and market rent, and the strength of rental demand. Landlords must carefully evaluate these factors using the specific data points provided and any additional local knowledge they possess.

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.