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 | $1,020 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,730 | $179,268 | 0.97% | C |
U.S. Census Bureau data (2024)
The investment landscape in ZIP 61561 presents several challenges for landlords and small-portfolio investors considering Section 8 properties. Firstly, tenant turnover poses a significant risk. The market rent of $1,162 stands well above the Fair Market Rent (FMR) of $900 for fiscal year 2024, which may deter tenants eligible for Section 8 vouchers. High turnover rates can lead to increased costs associated with finding new tenants and preparing units for occupancy.
Vacancy exposure is another critical concern. With no available data on the average days on market (DOM), it's difficult to predict how quickly a property might be rented out once vacated. This uncertainty can result in periods where rental income is lost, potentially leading to financial strain.
The deferred maintenance exposure is substantial given the typical home value of $168,958 and the median income of $86,071. Landlords must be prepared to invest in maintaining the property's condition, as the income levels suggest that tenants may not have the financial means to cover unexpected repairs or improvements. This risk is compounded by the fact that Section 8 landlords often face limitations on the amount they can charge for utilities and other incidental expenses, further constraining their ability to generate revenue.
However, these risks are offset by the high concentration of renters in the area, with 16.4% of the population being renters. A higher renter share typically correlates with greater demand for housing vouchers, making it easier to find qualified tenants who can stabilize cash flow through consistent rental payments. This demand can also help mitigate the impact of vacancy periods, as there is a larger pool of potential residents.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.