Location: Champaign-Urbana, IL | Metro: Champaign-Urbana, IL HUD Metro FMR Area
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 | $950 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $181,060 | 0.63% | D |
| 3BR | $1,430 | $225,333 | 0.63% | D |
| 4BR | $1,500 | $305,121 | 0.49% | F |
| 5BR | $1,740 | $467,636 | 0.37% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 61802 (Urbana, IL) on the axes of yield and stability reveals it to be a steady-cashflow zone. The Federal Market Rent (FMR) for ZIP 61802 in fiscal year 2024 is set at $1010, which is significantly lower than the market rent of $1,396. This difference suggests that properties in this area can generate above-average rental income compared to the FMR, but they do not reach the levels seen in high-yield markets.
The median home value in ZIP 61802 is $214,961. Given the FMR and market rent figures, an investment property here would likely have a positive cash flow when rented at the market rate. For instance, if a landlord rents out a property at $1,396 per month, the potential monthly cash flow after accounting for the FMR could be substantial, making it a good choice for steady income generation.
In terms of stability, the ZIP code has a renter population of 42.2%, indicating a moderate demand for rental properties. The days on market (DOM) average of 38 days suggests a relatively quick turnover for rental listings, which is favorable for landlords looking to minimize vacancy periods. Additionally, the median household income of $61,620 provides a reasonable level of financial security for tenants, reducing the risk of default and increasing the likelihood of timely rent payments.
While the yield is decent due to the gap between FMR and market rent, the stability factors—renter percentage and income levels—support a more conservative investment strategy rather than a high-risk, high-reward approach. Therefore, ZIP 61802 leans towards being a steady-cashflow zone, suitable for landlords and small-portfolio investors seeking reliable returns without excessive risk.
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.