Location: Peoria, IL | Metro: Bloomington, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 61774, located in Peoria, IL MSA, reveals a competitive rental landscape. The HUD Fair Market Rent (FMR) for the area is set at $980 for fiscal year 2024. This figure is notably lower than the market rent of $1,142 reported by the Census American Community Survey (ACS), indicating that landlords who accept Section 8 vouchers will experience marginal cash flow at best.
To further understand the dynamics, consider the median home value in the area, which stands at $169,434. Using this figure, we can calculate a rent-to-price ratio of approximately 0.67%. This ratio suggests that the rental income generated from properties in this ZIP code is relatively low compared to their purchase price, making appreciation a less attractive investment angle.
The strong disparity between the HUD FMR and the market rent implies that landlords will likely need to focus on premium units or specific property improvements to ensure positive cash flow. However, the data does not provide the median days on market (DOM) or the percentage of homes that have experienced price cuts, which would be crucial in determining the buy-versus-rent decision. Given the limited data, it's clear that the primary challenge for investors is achieving positive cash flow while adhering to the HUD FMR guidelines.
The most compelling angle for Section 8 investors in ZIP 61774 is stability. Despite the marginal cash flow, the consistent demand for affordable housing ensures a steady stream of tenants, reducing the risk of vacancy and providing long-term predictability in rental income.
Data Sources: FMR data from HUD (2027). 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.