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 | $1,070 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,610 | $252,698 | 0.64% | D |
U.S. Census Bureau data (2024)
9.2% of residents in ZIP 61864 are renters, indicating a modest demand for rental properties. With a Fair Market Rent (FMR) set at $1050 for the fiscal year 2024, landlords can expect to receive this amount as the maximum payment from Section 8 participants for a standard unit. The Census ACS reports the market rent at $1,222, suggesting that landlords might achieve slightly higher rents outside of Section 8. However, the median income in the area stands at $110,139, which could imply a stronger economic base supporting higher rents. Despite the median home value being $251,189, the specific data on days on market (DOM) and the percentage of homes that have had their prices cut are not available, leaving gaps in understanding the local housing market's liquidity and pricing trends.
The disparity between the FMR and the market rent indicates a potential challenge for landlords participating in the Section 8 program, as they may need to adjust their expectations. Nevertheless, the high median income suggests that many tenants can afford to pay above the FMR, potentially leading to a stable rental market. Given the limited availability of data regarding DOM and price-cut shares, landlords should focus on maintaining competitive rents and property conditions to attract and retain tenants.
For small-portfolio investors considering Section 8 participation in ZIP 61864, the verdict is cautious optimism. While the program caps rent at $1050, the strong local economy and higher market rents provide opportunities for landlords to secure reliable tenants. Investors should also be prepared to navigate the administrative requirements of the program while leveraging the economic strength of the area to ensure financial stability.
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.