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 | $700 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $197,301 | 0.62% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 61565 stands at $77,578. At first glance, this figure might suggest that residents have disposable income to cover the market rate rent of $679 per month, based on Census ACS data. However, the reality is more nuanced when considering the financial landscape faced by renters.
A household earning the median income would find the market rate rent affordable, as it represents approximately 9.5% of their annual income. Yet, the challenge for renters lies in the higher standard set by the Fair Market Rent (FMR), which is pegged at $810 per month for zip code 61565 in fiscal year 2024. This amount constitutes nearly 11.3% of the median annual income, making it a stretch for many households.
Given that only 12.8% of the 1,262 residents are renters, the competition among landlords for tenants is relatively low. However, the scarcity of rental units means that those who do rent must be selective and competitive in terms of pricing and amenities to attract and retain tenants.
The affordability gap between the market rate and the FMR suggests that landlords who accept vouchers might face fewer challenges in finding tenants willing to pay the FMR. Vouchers can ensure a steady stream of income without the risk of vacancy, though they come with their own set of regulations and requirements.
Landlords should consider that while cash-paying tenants might offer flexibility and potentially higher rents, accepting vouchers can provide a stable tenant base with guaranteed payments. The decision should balance the desire for higher monthly rents against the benefits of guaranteed income and the regulatory framework of voucher programs.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.