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 | $910 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $950 | $78,117 | 1.22% | A |
| 2BR | $1,200 | $139,450 | 0.86% | C |
| 3BR | $1,540 | $207,216 | 0.74% | D |
| 4BR | $1,690 | $274,431 | 0.62% | D |
| 5BR | $1,960 | $334,212 | 0.59% | F |
U.S. Census Bureau data (2024)
In Peoria, Illinois, specifically ZIP code 61614, the real estate market presents a unique scenario for landlords and small-portfolio investors. The median home value stands at $195,230, indicating a relatively affordable market. This figure is crucial when considering the investment potential in both residential properties and rental units.
The data reveals that only 0.3% of listings have seen reductions in price, which signals a strong pricing power for sellers. Coupled with the 15-day median days on market (DOM), this suggests that homes are selling quickly and at or near their asking prices. These conditions imply that the local housing market is robust, with minimal downward pressure on property values.
On the rental side, the forward-looking market analysis points to a slight advantage for landlords. The Fair Market Rent (FMR) for ZIP 61614 in fiscal year 2024 is projected to be $1,020, while the current market rent, as measured by ZORI (Zillow Observed Rent Index), is $1,073. This indicates that rental prices are slightly above the government's benchmark, suggesting that landlords can maintain or even modestly increase rents without significant risk of vacancy.
For long-term investors, the appreciation thesis in ZIP 61614 is anchored by the current market conditions and historical trends. With a median home value that is stable and a low percentage of price reductions, there is little evidence to suggest a decline in property values. Instead, the data supports the idea that property values will likely remain steady or see gradual growth, driven by the local economy and population stability.
Investors should consider the balance between home values and rental income. While the median home value provides a solid base for investment, the slightly higher market rents compared to the FMR offer an opportunity to generate positive cash flow. This setup allows landlords to leverage their investments effectively, ensuring that they can cover mortgage payments and maintenance costs while still realizing a profit.
The combination of quick sales, minimal price reductions, and favorable rental dynamics creates a stable environment for real estate investments in ZIP 61614. Landlords and small-portfolio investors can expect consistent performance from their assets, with limited risk of devaluation and the potential for steady income generation through rentals.
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.