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 | $840 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $119,686 | 0.93% | C |
| 3BR | $1,430 | $169,560 | 0.84% | C |
| 4BR | $1,570 | $180,010 | 0.87% | C |
U.S. Census Bureau data (2024)
The median income in ZIP code 61734, Illinois, stands at $71,435. Given this figure, let's examine the housing costs. The market rate for rent, according to the Census American Community Survey (ACS), is $874 per month. This means that a household earning the median income would spend approximately 13.5% of their monthly income on rent at the market rate. However, the Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $890, slightly above the market rate.
To put this into perspective, if we consider a household living solely on the median income, they would need to allocate nearly all of their disposable income to cover the rent at either the market rate or the FMR. This tight budget constraint highlights a significant affordability gap for renters in the area.
With only 21.3% of the 2,443 residents being renters, competition among landlords is likely to be fierce. Landlords will have to carefully balance their rental pricing to attract tenants without pricing themselves out of the market. Offering units at or below the market rate could make them more competitive and attractive to potential tenants.
For landlords considering whether to accept Housing Choice Vouchers (Section 8) or focus on cash-paying tenants, the data suggests that there is a notable challenge in finding affordable housing for those who rely on vouchers. Since the voucher payment standard is very close to the market rate, landlords might find little financial difference between accepting vouchers and renting to cash-paying tenants. However, the advantage of vouchers lies in their reliability and the guaranteed rent payments through the government program, which can provide a stable income stream.
The takeaway for landlords is that while the market rate and FMR are nearly identical, the decision to accept vouchers should be based on the desire for stable tenancy over potentially maximizing short-term rental income. Given the affordability gap, voucher holders represent a reliable segment of the rental market, ensuring that units are occupied even when other households face financial constraints.
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.