Section 8 Investing in Peoria, Illinois
Peoria is a B-grade Section 8 market in central Illinois: dependable cash flow when the property and price line up. The median 3-bedroom voucher pays around $1,345/mo, which supports a purchase near $135,000 if you want the rent to hit the 1% rule on day one.
The catch is the cost side. Illinois carries an effective property tax near 2%, and that's the figure that trims your net yield in Peoria. Run Peoria's ZIPs through CloseHound for free to see which deals still cash-flow once that tax is built into the math.
Peoria HUD Section 8 voucher rents by ZIP (FY2026)
Official HUD Small Area Fair Market Rents — the voucher ceiling a landlord can collect in each ZIP, by bedroom count.
| ZIP code | 2-bed | 3-bed | 4-bed |
|---|---|---|---|
| 61603 | $1,110/mo | $1,440/mo | $1,550/mo |
| 61604 | $1,050/mo | $1,360/mo | $1,460/mo |
| 61605 | $970/mo | $1,260/mo | $1,350/mo |
| 61606 | $1,010/mo | $1,310/mo | $1,410/mo |
| 61614 | $1,030/mo | $1,330/mo | $1,440/mo |
| 61615 | $1,200/mo | $1,550/mo | $1,670/mo |
Source: HUD FY2026 SAFMR. CloseHound underwrites live listings against these exact ceilings.
More Section 8 markets in Illinois
Peoria Section 8 FAQ
What's the Section 8 voucher rent for a 3-bed in Peoria?+
The FY2026 median 3-bedroom voucher in Peoria is roughly $1,345/mo, ranging from about $1,260 to $1,550/mo across ZIPs.
Is Peoria a good Section 8 market?+
It grades B, so it's a reliable cash-flow market with the right property. Worth screening on a regular basis.
What's the tax and insurance drag in Peoria?+
Property tax is the main drag at about 2% effective, the Illinois statewide reality. Insurance is modest near 0.8%, so taxes drive the underwriting.
How do I screen Section 8 deals in Peoria?+
Pull Peoria into CloseHound, compare list prices against the ~$135,000 the median voucher supports, and check each property nets after the 2% property tax.
Screen Peoria deals free
See which Peoria listings actually cash-flow on the voucher — underwritten and ranked by Deal Score.
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