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 Section 8 thesis in ZIP code 61653 is based on the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $990. However, the market rent is currently unavailable, which complicates the direct comparison necessary for a precise analysis.
In the event that the FMR exceeds the market rent, this would indicate a significant opportunity for landlords and small-portfolio investors. Voucher tenants would effectively subsidize the rental income, making it a yield play. The difference between the FMR and the lower market rent would directly benefit the landlord, ensuring a higher return on investment compared to traditional tenants paying market rates.
If the FMR is below the market rent, the situation changes. Landlords accepting housing vouchers would be renting their properties below the open-market rates. This scenario can be seen as a cost, as the landlord foregoes potential higher rents that could be charged in an open market. The exact financial impact depends on the unknown market rent figure, but it's clear that any amount above $990 would represent forgone revenue.
The analysis must also consider the broader context of Unknown, IL. With the percentage of renters, median home value, and median income all currently unspecified, it's challenging to provide a comprehensive picture. Typically, these factors influence the attractiveness of Section 8 tenancy. A high percentage of renters might suggest a strong demand for affordable housing, while a low median income could make voucher-based rentals particularly appealing to potential tenants.
To conclude, the viability of Section 8 tenancy in ZIP 61653 is contingent upon the relationship between the FMR and the actual market rent. Given the FMR of $990, landlords should carefully evaluate the local rental market before deciding whether to participate in the Section 8 program. The decision should factor in the potential yield benefits against the possible costs of renting below market rates, alongside the demographic characteristics of Unknown, IL.
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.