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 | $900 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $75,031 | 1.59% | A+ |
| 3BR | $1,530 | $114,048 | 1.34% | A |
| 4BR | $1,680 | $142,091 | 1.18% | B |
| 5BR | $1,949 | $175,447 | 1.11% | B |
U.S. Census Bureau data (2024)
ZIP code 61606 in Peoria, Illinois, stands out due to its unique demographic and economic characteristics. With a population of 6,684, this area has a high rental rate of 57.9%, indicating a significant portion of its residents prefer leasing over homeownership. The median income in ZIP 61606 is $39,196, which is below the national average, suggesting that many residents rely on affordable housing options such as Section 8 vouchers. The median home value in the region is $121,636, which is also relatively low compared to other parts of the state.
The voucher economics in ZIP 61606 are particularly noteworthy. The Fair Market Rent (FMR) for the area, set at $910 for fiscal year 2024, is significantly lower than the market rent, which is measured at $1,422 using the ZORI index. This difference means that landlords can expect to receive a subsidy of up to $512 per month above the voucher amount if they choose to participate in the Section 8 program. However, it's important to note that the actual payment standard may vary based on bedroom size and unit type.
The data signature for ZIP 61606 reads as stable rather than transitional. The consistent rental rate and median income levels indicate a settled community where affordable housing solutions like Section 8 play a crucial role. Landlords and small-portfolio investors should consider the benefits of participating in the Section 8 program, including steady rental income and the opportunity to serve a community that heavily relies on affordable housing options.
To summarize, ZIP 61606 in Peoria, IL, offers a balanced environment for landlords interested in the Section 8 program. The disparity between the FMR and market rent presents an opportunity for landlords to secure higher returns while providing essential housing support to local residents. Given the stable nature of the data, landlords can anticipate a predictable and sustainable investment in this area.
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.