Section 8 Fair Market Rent (FMR) for ZIP 61856 - 2027

Location: Champaign-Urbana, IL | Metro: Champaign-Urbana, IL HUD Metro FMR Area

Investment Score for ZIP 61856

D
Monthly Rent (2BR)
$1,270
Median Price (2BR)
$178,745
1% Rule
0.71%
Annual Yield
8.53%

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$1,060
1 Bedroom$1,080
2 Bedrooms$1,270
3 Bedrooms$1,600
4 Bedrooms$1,670
5 Bedrooms$1,937
6 Bedrooms$2,169
7 Bedrooms$2,343
8 Bedrooms$2,460

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
2BR $1,270 $178,745 0.71% D
3BR $1,600 $265,225 0.6% D
4BR $1,670 $388,646 0.43% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
8,226
Median Household Income
$103,559
Housing Units
3,546
Renter Percentage
14.3%
Occupancy Rate
95.9%
Renter Occupied
486

The market in ZIP 61856, Monticello, IL, presents a dynamic scenario that balances between supply and demand, but leans towards a slight surplus of rental units. The Fair Market Rent (FMR) for the area stands at $1,110 for fiscal year 2024, while the actual market rent, according to Census ACS data, is higher at $1,398. This indicates that the rental market is somewhat robust, with landlords able to charge above the FMR. However, the low price-cut share of 0.2% suggests that while there might be some competition among landlords, it is minimal, and most properties are likely being rented without significant concessions.

The median home value in Monticello is $267,055, which reflects a stable housing market. With a renter share of 14.3%, the majority of residents own their homes, indicating a preference for homeownership over renting. Despite this, the presence of a sizeable rental market implies ongoing housing pressure, particularly for those who may not yet qualify for homeownership or prefer renting due to lifestyle choices or financial considerations.

The lack of days on market (DOM) data could suggest that either the market is balanced, with properties renting quickly once listed, or that the data collection process is inconsistent. Given the high market rent relative to FMR and the low price-cut share, it's reasonable to infer that the rental market moves relatively swiftly, though this remains speculative without DOM data.

In summary, ZIP 61856 appears to be a market where supply slightly outpaces demand, but the rental market remains strong. Landlords can maintain higher rents, and the low price-cut share suggests that tenants are willing to pay these rates without substantial negotiation. The significant homeowner population, alongside a notable rental market, points to a diverse housing landscape with persistent pressure for affordable rentals, especially as the renter share represents a segment of the population that might be price-sensitive or financially constrained.

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.