Section 8 Fair Market Rent (FMR) for ZIP 61853 - 2027
Location: Champaign-Urbana, IL | Metro: Champaign-Urbana, IL HUD Metro FMR Area
Investment Score for ZIP 61853
N/A
Monthly Rent (2BR)
$1,480
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
FY 2027 Fair Market Rent Rates
| 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 |
Investment Analysis by Bedroom Size
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms |
Monthly FMR |
Median Price |
1% Rule |
Grade |
| 3BR |
$1,860 |
$295,900 |
0.63% |
D |
| 4BR |
$1,950 |
$416,548 |
0.47% |
F |
| 5BR |
$2,262 |
$542,106 |
0.42% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$115,512
To determine if a landlord should buy in ZIP code 61853 for Section 8 purposes, follow these steps:
- Does FMR $1200 (zip FY 2024) clear debt service on a $340,229 property?
- Yes: The Fair Market Rent (FMR) of $1200 is sufficient to cover the debt service on a property valued at $340,229. This means that the rental income from a Section 8 tenant would be enough to meet the mortgage payments and other financing costs.
- No: The FMR of $1200 does not clear the debt service on a property priced at $340,229. This indicates that the rental income from a Section 8 tenant would fall short of covering the mortgage payments and other financing obligations, making it a risky investment.
- Is market rent $2,075 (ZORI) above, at, or below FMR?
- Above: The Zillow Rent Index (ZORI) of $2,075 is significantly higher than the FMR of $1200. This suggests that there is a substantial gap between the market rent and what Section 8 pays, which could make the property less attractive to Section 8 tenants compared to other options in the area.
- At: If the market rent were exactly at the FMR, then the property would be competitive for Section 8 tenants, but since the ZORI is $2,075, this scenario does not apply here.
- Below: This scenario does not apply as the ZORI is $2,075, which is above the FMR of $1200.
- Are 16.5% renters + N/A-day DOM enough demand?
- It Depends: With 16.5% of the population being renters, there is a notable demand for rental properties. However, the Days on Market (DOM) being listed as N/A makes it challenging to assess how quickly rental units are typically filled in this area. Without this data, it's difficult to predict the ease of finding and retaining Section 8 tenants.
In conclusion, if the FMR of $1200 can clear the debt service on a $340,229 property, then it is a viable option for Section 8 investment. Given the market rent is $2,075, it will be crucial to consider the competition from non-subsidized rentals. Lastly, the lack of DOM data complicates the assessment of rental demand, so further investigation into local vacancy rates and tenant turnover is recommended before making an investment decision.
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.