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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $215,512 | 0.66% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 61747 reveals a unique balance between yield potential and market stability. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $940. This figure exceeds the market rent of $881, indicating a higher potential rental income compared to what might be expected without the assistance of the Section 8 program. Given the average home value of $191,080, the FMR suggests a strong yield opportunity for landlords willing to participate in the Section 8 housing assistance program.
However, the stability of this market is less straightforward. With only 19.5% of the population being renters, there is a relatively low demand for rental properties, which could lead to longer vacancy periods if the supply of rental units exceeds the demand. Additionally, the median household income of $80,333 is moderate, which can affect the ability of tenants to maintain consistent rent payments, especially if they rely heavily on the Section 8 voucher system. The lack of data on days on market (DOM) further complicates the assessment of stability, as it is an important indicator of how quickly properties can be rented out once they become available.
Based on these figures, ZIP 61747 does not clearly fit into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents a middle ground where the potential for higher yields through Section 8 participation is present, but the lower percentage of renters and moderate income levels suggest that the market is not entirely stable. Landlords should consider these factors carefully when deciding whether to enter or expand their presence in this ZIP code. Participation in the Section 8 program can enhance cash flow, but the relatively low demand for rentals may pose challenges in maintaining a fully occupied portfolio.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.