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 | $990 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $172,007 | 0.69% | D |
| 3BR | $1,480 | $205,081 | 0.72% | D |
| 4BR | $1,550 | $285,068 | 0.54% | F |
| 5BR | $1,798 | $379,175 | 0.47% | F |
U.S. Census Bureau data (2024)
The real estate landscape in Champaign, IL (ZIP 61821) presents a nuanced picture for landlords and small-portfolio investors. With a median home value of $199,051, the market signals a relatively stable and affordable housing environment. The fact that only 0.2% of listings have reduced their prices indicates a strong seller's market, where homeowners have confidence in the value of their properties. This is further supported by a median Days on Market (DOM) of just 16 days, suggesting quick sales and high demand.
On the rental side, the Forward Monthly Rent (FMR) for ZIP 61821 in fiscal year 2024 is projected at $1,140. In contrast, the actual market rent, as indicated by the Zillow Observed Rental Index (ZORI), stands at approximately $1,400. This gap suggests that landlords can maintain higher rents compared to government projections, providing a buffer against potential economic downturns or changes in local policy.
For long-term investors, the data implies a cautious approach to the appreciation thesis. While the current market conditions suggest stability and a slight advantage in maintaining property values, the modest median home value and the low percentage of price reductions indicate limited room for significant growth. Investors should focus on the rental income potential rather than expecting substantial capital appreciation over the next 12-24 months.
The setup the data implies is one where landlords and small-portfolio investors can leverage the current strong seller's market to secure good rental yields. However, they must be prepared for a market that will likely remain steady rather than experiencing rapid increases in property values. This means that while there is a solid foundation for maintaining and even slightly increasing rents, the primary source of returns should be seen through rental income rather than speculative gains from property appreciation.
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.