Section 8 Fair Market Rent (FMR) for ZIP 61603 - 2027

Location: Peoria, IL | Metro: Peoria, IL MSA

Investment Score for ZIP 61603

A+

Monthly Rent (2BR)

$1,300

Median Price (2BR)

$61,133

1% Rule

2.13%

Annual Yield

25.52%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$980
1 Bedroom	$1,030
2 Bedrooms	$1,300
3 Bedrooms	$1,670
4 Bedrooms	$1,830
5 Bedrooms	$2,123
6 Bedrooms	$2,378
7 Bedrooms	$2,568
8 Bedrooms	$2,696

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,030	$47,411	2.17%	A+
2BR	$1,300	$61,133	2.13%	A+
3BR	$1,670	$73,600	2.27%	A+
4BR	$1,830	$73,020	2.51%	A+
5BR	$2,123	$76,693	2.77%	A+

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

15,356

Median Household Income

$41,618

Housing Units

8,088

Renter Percentage

47.1%

Occupancy Rate

82.5%

Renter Occupied

3,145

To determine if a landlord should invest in ZIP 61603 (Peoria, IL) for Section 8 properties, follow these steps:

Does the Fair Market Rent (FMR) of $1040 cover the debt service on a property valued at $60,319?
- Yes: The FMR of $1040 is sufficient to cover the debt service on a property valued at $60,319. This indicates that the rental income from a Section 8 tenant would meet the financial obligations of owning the property.
- No: The FMR of $1040 does not cover the debt service on a property valued at $60,319. This suggests that the rental income from a Section 8 tenant would be insufficient to meet the financial obligations of owning the property.
Is the market rent of $1,057 (ZORI) above, at, or below the FMR?
- Above: The ZORI of $1,057 is slightly above the FMR of $1040, indicating that market rents are higher than what Section 8 tenants can pay. Landlords might consider renting to non-Section 8 tenants to maximize their revenue.
- At: The ZORI of $1,057 is nearly at the FMR of $1040, suggesting that market rents align closely with Section 8 rates. This scenario supports the idea of accepting Section 8 tenants without significant financial loss.
- Below: Since the ZORI of $1,057 is above the FMR of $1040, this branch does not apply. However, if market rents were below the FMR, it would indicate a potential misalignment between Section 8 rates and market conditions, which could make the investment less attractive.
Are the 47.1% renters combined with an unknown number of days on the market (DOM) enough to support demand?
- It Depends: With 47.1% of the population being renters, there is a decent level of demand for rental properties. However, the unknown DOM makes it challenging to assess how quickly properties are rented out. If the DOM is low, it implies strong demand; if high, it suggests a slower rental market. A low DOM would favor a positive decision, whereas a high DOM would suggest caution.

In conclusion, ZIP 61603 presents a viable opportunity for landlords interested in Section 8 properties, provided the FMR sufficiently covers the debt service and the DOM is low enough to ensure steady demand. The slight edge in market rent over FMR offers flexibility in targeting both Section 8 and non-Section 8 tenants.

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.