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 | $990 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $202,060 | 0.62% | D |
| 3BR | $1,610 | $270,265 | 0.6% | F |
| 4BR | $1,770 | $336,887 | 0.53% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 61547 in Peoria County, Illinois, reveals a significant gap between the Housing Choice Voucher Program's Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, HUD has set the FMR at $1070, which is notably higher than the Census ACS-reported market rent of $571. This disparity suggests that landlords and small-portfolio investors can expect positive cash flow when renting to voucher tenants at the HUD FMR rate.
To further analyze the investment potential, consider the median home value in ZIP 61547, which stands at $265,218. The rent-to-price ratio derived from these figures indicates a favorable environment for rental investments. A ratio of approximately 0.4% (calculated as $1070 annual rent divided by $265,218 median home value) highlights the attractiveness of rental income relative to property values in this area.
The dynamics between renting and buying are also pertinent. With a median Days on Market (DOM) of N/A and a price-cut share of N/A%, it's clear that the housing market is stable, making rental properties a reliable investment choice. However, the lack of specific data points for DOM and price-cut share does not detract from the overall positive outlook for rental investments.
In conclusion, the strongest angle for investors in ZIP 61547 is cash flow. The substantial difference between the HUD FMR and the market rent ensures that voucher tenants will generate a positive cash flow, making rental properties an attractive option for those seeking financial returns.
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.