Section 8 Fair Market Rent (FMR) for ZIP 61863 - 2027

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

Investment Score for ZIP 61863

N/A

Monthly Rent (2BR)

$1,010

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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	$850
1 Bedroom	$870
2 Bedrooms	$1,010
3 Bedrooms	$1,300
4 Bedrooms	$1,450
5 Bedrooms	$1,682
6 Bedrooms	$1,884
7 Bedrooms	$2,035
8 Bedrooms	$2,137

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,300	$217,922	0.6%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

844

Median Household Income

$78,125

Housing Units

347

Renter Percentage

8.4%

Occupancy Rate

96.3%

Renter Occupied

The economics of Section 8 in ZIP code 61863 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP is set at $1130 for fiscal year 2024. Meanwhile, the local market rent, according to the Census ACS (American Community Survey), stands at $1,554. This difference highlights the potential financial considerations for landlords.

A Section 8 voucher pays a significant portion of the rent, but not all of it. Here's a breakdown of how it works:

The tenant pays approximately 30% of their adjusted income towards rent. For instance, if the tenant's monthly income is $1,500, they would pay around $450.
The remaining amount is covered by the voucher, up to the SAFMR limit. In this case, the voucher would cover $1130 minus the tenant’s contribution, which is $680.
Utility allowances are also factored into the equation. These vary but generally provide an additional $200 to $300 per month to cover electricity, water, and other utilities.

Given these specifics, let's calculate the total reimbursement a landlord can expect. If the tenant pays $450 and the voucher covers $680, plus an average utility allowance of $250, the total reimbursement comes to $1,380. This is below the local market rent of $1,554.

The typical reimbursement gap for a two-bedroom unit in ZIP 61863 is thus $174 per month ($1,554 - $1,380). This means landlords will need to consider this shortfall when deciding whether to participate in the Section 8 program. While the program offers stability and a steady stream of rental payments, the economic reality is that landlords will receive less than the market rate for their properties.

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.