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 | $1,240 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $194,648 | 0.76% | D |
| 3BR | $1,860 | $280,179 | 0.66% | D |
| 4BR | $1,950 | $409,803 | 0.48% | F |
| 5BR | $2,262 | $537,487 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 61822, which encompasses Champaign, IL, and the broader Champaign-Urbana HUD Metro FMR Area, presents a clear opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $1350 for fiscal year 2024. In comparison, the market rent, as indicated by the Zillow Observed Rental Index (ZORI), stands at $1624. This means that landlords who participate in the Section 8 program can expect to cashflow marginally when renting properties at the HUD FMR rate, given the gap between the FMR and the actual market rent.
To further analyze the investment potential, consider the median home value in the area, which is $324,849. Using this figure, we can derive the rent-to-price ratio. At the HUD FMR rate of $1350, the annual rent would be $16,200, resulting in an approximate rent-to-price ratio of 5%. This ratio suggests that rental income alone does not fully justify the purchase price of homes in the area. However, the stability offered by the Section 8 program can offset this discrepancy, providing a reliable stream of income even when market rents are higher.
The dynamics of the local real estate market also support this analysis. With a median Days on Market (DOM) of 21 days and only 0.2% of listings requiring a price cut, the market indicates a strong demand for housing. This low DOM and minimal need for price reductions suggest that landlords can quickly find tenants and maintain competitive pricing without significant concessions. Additionally, the robust demand for housing supports the stability of the rental market, making it easier for landlords to manage their properties and ensure consistent occupancy rates.
The strongest investor angle in this market is stability. Given the high demand for housing and the reliable nature of the Section 8 program, landlords can expect steady cashflows and minimal vacancy periods, ensuring a stable and predictable return on investment.
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.