Location: Peoria, IL | Metro: Peoria, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
The decision to invest in ZIP 61612 for Section 8 properties hinges on several key factors that can be evaluated through a straightforward decision tree.
1. Does the Fair Market Rent (FMR) of $990 cover the debt service?
No. The FMR does not provide sufficient income to cover the debt service on a property in ZIP 61612, as the FMR figure is below what would typically be required to meet mortgage payments and other financial obligations associated with property ownership. This makes it difficult to rely solely on Section 8 tenants to ensure profitability.
2. How does the market rent compare to the FMR?
It depends. Without specific market rent data, it's impossible to determine if the market rent is above, at, or below the FMR. However, generally, if market rents are significantly higher than the FMR, landlords might consider diversifying their tenant mix beyond Section 8 to maximize returns. Conversely, if market rents are close to or below the FMR, focusing on Section 8 could still be viable but with the caveat noted above regarding debt service coverage.
3. Is there enough demand based on the percentage of renters and days on the market (DOM)?
Insufficient data. With no percentage of renters or DOM figures available, it's challenging to assess the demand accurately. Typically, a higher percentage of renters and lower DOM indicate strong demand, which could support a Section 8 investment strategy. However, in ZIP 61612, the lack of these specifics means the viability of such an investment remains unclear.
In summary, ZIP 61612 presents a challenging environment for Section 8 investments due to the FMR not covering debt service. The absence of market rent and demand metrics complicates further analysis, suggesting that potential investors should seek additional local insights before making a decision.
Data Sources: FMR data from HUD (2027).
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.