Peters was remembered as a man who loved cars, comic book heroes and always did the right thing.
Community joined mourning family members in a loving tribute to Peters.
"There is a hole in the universe now that's Stephen's gone," said the victim's father, Robert Peters.
No dignitaries were present at the ceremony, but an abundance of friends and co-workers were among the several hundred people who gathered at St. Phillip Neri church to honor the slain former officer.
"He was a wonderful guy, good co-worker. He did the right thing. We miss him," former co-worker Jose Amador said.
Friends and relatives praised Peters, whose nickname was Superman, not only because of his love of the comic book hero, but also for his service and dedication to others.
Current Chicago police Officer Damone Riggins was Peters partner with the CHA for eight years before the unit was disbanded.
"He called himself Superman, and right now, Superman is in heaven," said Riggins.
Peters, a Forest Park resident, was gunned down last week along with Chicago Police Officer Michael Flisk, an evidence technician who had responded to Peters' call to police that his prized Mustang -- which he stored in his mother's garage-- had been burglarized.
"He just loved those Mustangs, and I remember we always teased him about it. It's just a shame," said Amtrak Police Officer Deneen Fears-Hill, Peters' former co-worker.
A suspect, Timothy Herring Jr., has been charged in the murders. He allegedly was returning to collect stolen parts from a trash can when he killed the two men.
Amid the sorrow and grief, Peters friend Fernando Townsend says he is also angry. He says he was also shot by the 19-year-old parolee and wants to know why he was released from prison early.
"he's been terrorizing the whole neighborhood over there, breaking in, stealing stuff," Townsend said.
During Saturday's eulogy, Stephen Peters also was remembered as a loving husband and father who will be missed.
"I just hope he'll look down on me and be proud of the man I'm becoming and the man he always wanted me to be," son Jordan Peters Harris said.
Despite the immense pain and grief, the family of Stephen Peters is still reaching out to others and again extended their condolences to the family of Officer Michael Flisk.
Herring remained jailed Saturday after a judge denied him bond.