Location: Peoria, IL | Metro: Bloomington, 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 | $930 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,580 | $203,561 | 0.78% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 61738 within the Peoria, IL MSA reveals a competitive rental environment. The HUD Fair Market Rent (FMR) for ZIP 61738 in fiscal year 2024 is set at $960, slightly above the market rent of $939 reported by the Census American Community Survey (ACS).
Voucher tenants in this area will cashflow at the FMR rate, but the margin is narrow. This suggests that landlords can expect to break even or make a small profit when renting to voucher holders at the FMR. However, achieving positive cashflow becomes more feasible with premium units that offer better amenities or are in superior locations.
The median home value in ZIP 61738 is $194,629. To derive the rent-to-price ratio, we calculate $939 monthly rent against the median home value. This yields a rent-to-price ratio of approximately 0.0048, indicating that rental income represents a small percentage of the home's total value. For context, a lower rent-to-price ratio typically means that buying is more favorable than renting, which could impact the local rental market dynamics.
Note that the median days on market (DOM) and the percentage of homes that experience price cuts are not available. These metrics would be useful in assessing the overall health of the housing market and how it influences the rental market. However, given the slight premium of the FMR over the market rent, it is clear that the rental market remains competitive.
The strongest angle for investors in ZIP 61738 is stability. With a modest gap between market rents and FMRs, and considering the steady demand for affordable housing, landlords can expect consistent cashflow and low vacancy rates. This makes ZIP 61738 an attractive option for those seeking long-term, stable investments in the rental market.
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.