Location: Logan County, IL | Metro: Peoria, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 62635 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $950 per month for fiscal year 2024. This is higher than the local market rent, which averages $889 according to the Census ACS data.
A landlord should understand that a voucher does not cover the entire rent amount. Instead, it subsidizes the difference between what the tenant can afford and the actual rent. For a two-bedroom unit, the tenant is expected to pay 30% of their adjusted income towards rent. If the tenant's monthly adjusted income is $1,000, they would contribute $300 toward the rent.
The remaining balance is covered by the Section 8 voucher program. In the case of a $950 SAFMR, the voucher would cover the difference between the tenant’s contribution and the SAFMR. Thus, if the tenant contributes $300, the voucher would pay the landlord $650 to meet the total rent of $950. However, since the local market rent is lower at $889, the landlord could potentially receive a smaller subsidy of $589 from the voucher program, assuming the tenant still contributes $300.
In addition to the rent, there are utility allowances that can vary. These allowances are designed to help cover the cost of utilities for the tenant. For a two-bedroom unit, the utility allowance might be around $200 per month, depending on the specifics of the housing unit and its location. This allowance is paid directly to the tenant to manage their own utility costs.
To summarize, in ZIP code 62635, the SAFMR for a two-bedroom unit is $950, while the local market rent is $889. A landlord will receive a subsidy from the voucher program that covers the gap between the tenant’s 30% contribution and the SAFMR or local market rent, whichever is lower. Given these numbers, a landlord renting at the market rate of $889 would receive a total of $889 ($589 from the voucher program and $300 from the tenant), resulting in no significant surplus or shortfall compared to the SAFMR.
The typical reimbursement gap or surplus for a two-bedroom unit in ZIP 62635 is minimal when renting at the market rate. Landlords who rent at or below the market rate of $889 will find the voucher payments sufficient to cover the rent without additional financial burden. Those who charge the SAFMR rate of $950 will have a slight surplus, receiving an extra $61 per unit over the market average, assuming the tenant pays $300.
Data Sources: FMR data from HUD (2027). 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.