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 | $1,090 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,850 | $221,937 | 0.83% | C |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 61733 within the Peoria, IL MSA reveals a competitive but manageable landscape. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1,140, closely matching the market rent of $1,152 reported by the Census American Community Survey (ACS).
Voucher tenants will cashflow at the FMR level, with minimal room for error. Given the tight margins, landlords should ensure their properties are well-maintained and efficient to avoid any unnecessary costs. The median home value in this area is $194,045, which yields a rent-to-price ratio of approximately 0.7%. This indicates that rental income is relatively low compared to property values, suggesting that appreciation might be a stronger factor for investment returns.
While the day's median Days on Market (DOM) and the percentage of price cuts are not available, these metrics would be useful in understanding the rent-versus-buy dynamics. In the absence of these figures, it's important to note that the current market conditions favor those who can maintain properties efficiently and take advantage of long-term investment strategies.
The strongest angle for investors in ZIP 61733 is likely to be stability, given the close alignment between the HUD FMR and market rents. Stability ensures consistent cash flow and minimizes the risk of vacancy, making it an attractive option for both landlords and small-portfolio investors.
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.