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 | $920 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $970 | $59,759 | 1.62% | A+ |
| 2BR | $1,220 | $92,835 | 1.31% | A |
| 3BR | $1,570 | $132,816 | 1.18% | B |
| 4BR | $1,720 | $154,266 | 1.11% | B |
| 5BR | $1,995 | $154,306 | 1.29% | A |
U.S. Census Bureau data (2024)
ZIP 61604, located in Peoria, IL, and part of the Peoria, IL MSA metro area, serves as a strategic cash-flow anchor within a Section 8 portfolio. The Federal Market Rent (FMR) for the fiscal year 2024 is set at $970, while the current market rent stands at $1,008. This $118 spread indicates that landlords can secure higher rents than the government subsidy, thus generating positive cash flow above the Section 8 payment. Additionally, the median home value in this ZIP code is $104,978, which suggests that property values are relatively stable and affordable.
The cash-flow anchor designation is further supported by the fact that 32.0% of residents are renters, with a median income of $52,414. These figures imply a consistent demand for rental properties and a stable tenant pool, essential for maintaining steady cash flow. Despite the modest 0.2% price-cut share and a 26-day days on market (DOM), which might suggest limited potential for rapid appreciation, the primary focus remains on the reliable generation of cash flow. Landlords should prioritize properties that can be rented out at or near the market rate, ensuring they capture the full benefit of the spread between FMR and market rent.
To leverage this ZIP code effectively, landlords should target properties that offer good value for the median home price and ensure that their rental rates align with the market but remain within the acceptable range for Section 8 tenants. This approach allows them to maximize their financial returns while providing affordable housing options in line with government guidelines. In conclusion, ZIP 61604 is best suited as a cash-flow anchor due to its favorable spread between FMR and market rent, coupled with a stable tenant demographic and property values.
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.