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 | $1,070 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $187,459 | 0.76% | D |
| 3BR | $1,820 | $273,690 | 0.66% | D |
| 4BR | $2,000 | $364,340 | 0.55% | F |
| 5BR | $2,320 | $440,540 | 0.53% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 61548, Illinois, stands at $128,559. At first glance, this figure suggests that households in the area have a substantial disposable income. However, when considering the market rate for rent, which is $1,154 according to the Census ACS, it becomes evident that the actual cost of housing is a significant portion of the average household's budget.
The Federal Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1,130. This means that while the market rate is slightly higher, there is a relatively small difference between what the market demands and what the government is willing to pay through vouchers. For tenants receiving vouchers, the financial burden of rent is significantly reduced, making it easier for them to secure housing.
Given that only 6.3% of the population are renters and the total population is 12,037, the rental market is quite limited. The small percentage of renters implies stiff competition among landlords for the available tenant pool. This competition could drive down rental rates, especially if landlords rely solely on market-rate tenants without considering those who might use vouchers.
The affordability gap in ZIP 61548 highlights the importance of diversifying tenant acquisition strategies. Landlords should consider accepting Section 8 vouchers to remain competitive and ensure steady occupancy. While cash-paying tenants may offer higher rents, the stability provided by voucher holders can be advantageous, particularly in a market where the number of potential renters is low.
Takeaway: In ZIP 61548, landlords must balance the pursuit of higher rental incomes with the need for consistent occupancy. Accepting vouchers can help fill units that might otherwise sit empty due to the limited number of renters and the high cost of living relative to income. This approach ensures a stable revenue stream and helps maintain a competitive edge in a challenging rental environment.
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.