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 | $1,050 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $166,089 | 0.84% | C |
| 3BR | $1,790 | $214,033 | 0.84% | C |
| 4BR | $1,960 | $342,558 | 0.57% | F |
| 5BR | $2,274 | $476,367 | 0.48% | F |
U.S. Census Bureau data (2024)
The potential risks for Section 8 investments in ZIP code 61615 in Peoria, IL, are significant. Tenant turnover is a critical concern, with the market rent at $1,330 compared to the Fair Market Rent (FMR) of $1,120 for FY 2024. This discrepancy suggests that tenants might struggle to afford the higher market rates, leading to frequent turnover and increased costs associated with finding new tenants.
Vacancy exposure is another issue, with an average Days on Market (DOM) of only 14 days. This short period indicates that while there may be quick occupancy, it also implies a lack of leverage over rental prices, as landlords must accept offers promptly to avoid prolonged vacancies.
Deferred maintenance is a notable risk due to the typical home value of $246,214 and the median household income of $79,817. The disparity between these figures can result in underfunded properties where necessary repairs and maintenance are postponed, leading to potential safety issues and higher long-term costs.
However, these risks must be weighed against the high renter share of 41.3%. A large percentage of renters typically correlates with higher demand for housing vouchers, which can provide a stable source of income for landlords. The presence of many renters also ensures a steady pool of potential tenants, reducing the likelihood of extended vacancy periods.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.