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 | $970 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $149,764 | 0.85% | C |
| 3BR | $1,640 | $239,535 | 0.68% | D |
| 4BR | $1,810 | $290,139 | 0.62% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 61559, Princeville, IL, on the axes of yield and stability reveals a nuanced picture that falls somewhere in between high-yield/low-stability and steady-cashflow zones.
Yield Analysis: The Fair Market Rent (FMR) for the fiscal year 2024 in ZIP 61559 is set at $960, which is slightly above the local market rent of $931. This suggests a modest opportunity for higher rental yields compared to the broader market. However, when considering the median home value of $223,073, the potential for significant capital appreciation is limited, given the relatively low FMR. Landlords and small-portfolio investors should expect a moderate return on investment, driven primarily by rental income rather than rapid property value increases.
Stability Analysis: Stability in this context is influenced by the percentage of renters, median days on market (DOM), and median household income. With only 9.1% of residents being renters, the demand for rental properties is lower, indicating less stability in terms of consistent tenant occupancy. The median household income of $101,200 provides insight into the economic health of the area, but without a median DOM figure, it's challenging to assess the ease of finding tenants or the duration of vacancies. Given these factors, the market in Princeville appears to be less stable due to the low rental population and potentially longer vacancy periods.
In summary, ZIP 61559 offers a moderate yield scenario, with rental prices slightly exceeding the market average. However, the stability is compromised by the low percentage of renters and the lack of data on DOM, suggesting a riskier environment for landlords who might face challenges in maintaining continuous tenancy. Investors seeking a balance between yield and stability would find this area somewhat favorable for generating rental income but should prepare for potential fluctuations in occupancy rates.
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.