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 | $780 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $820 | $61,669 | 1.33% | A |
| 2BR | $1,030 | $95,107 | 1.08% | B |
| 3BR | $1,320 | $125,410 | 1.05% | B |
| 4BR | $1,450 | $154,036 | 0.94% | C |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 61610, located in Creve Coeur, IL, revolves around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $810, while the Census ACS reports the market rent at $883. This creates a gap of $73, or approximately 8.8%, between what landlords can charge under the Section 8 program and the prevailing open-market rent.
Given that the FMR is lower than the market rent, landlords must understand the financial implications of accepting Section 8 tenants. The difference of $73 per month means that landlords will be receiving less rent compared to what they could potentially earn from an open-market tenant. This situation can lead to a lower overall yield on their investment properties.
In the context of Creve Coeur, IL, where only 20.4% of residents are renters, landlords might question the viability of the Section 8 program. However, the median home value stands at $102,666, indicating that the local real estate market is relatively affordable. With a median income of $47,993, many residents may find it challenging to afford market rents, making the Section 8 program a critical component of the rental landscape.
Despite the lower FMR, there are several reasons why landlords might still consider participating in the Section 8 program. First, the program guarantees timely rent payments through the Housing Choice Voucher, which covers the difference between the FMR and what the tenant pays based on their income. Second, the demand for affordable housing is high, and the program can provide a steady stream of tenants who are often reliable and maintain their homes well.
However, landlords should also be aware of the additional administrative costs associated with Section 8. These include the time and effort required to manage the application process, comply with inspection requirements, and handle any issues that arise with the vouchers. Additionally, the lower rent can impact the overall profitability of a property, especially when factoring in maintenance costs and property taxes.
To summarize, the gap between the FMR of $810 and the market rent of $883 in ZIP 61610 represents a significant financial consideration for landlords. While the program offers stability and guaranteed payments, it also comes with a trade-off in terms of reduced rental income compared to the open market. In Creve Coeur, IL, where affordability is a key issue, the Section 8 program remains a crucial option for both tenants and landlords alike.
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.