Section 8 Fair Market Rent (FMR) for ZIP 60004 - 2027

Investment Score for ZIP 60004

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	$2,060
1 Bedroom	$2,190
2 Bedrooms	$2,470
3 Bedrooms	$3,180
4 Bedrooms	$3,630
5 Bedrooms	$4,211
6 Bedrooms	$4,716
7 Bedrooms	$5,093
8 Bedrooms	$5,348

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
1BR	$2,190	$182,990	1.2%	B
2BR	$2,470	$305,261	0.81%	C
3BR	$3,180	$477,643	0.67%	D
4BR	$3,630	$650,769	0.56%	F
5BR	$4,211	$784,022	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60004 (Arlington Heights, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Arlington Heights, IL (ZIP 60004) in 2026 is set at $2190 for a two-bedroom unit, which represents 20.4% of the median household income in the area. This FMR is significantly lower than the actual rent levels in the market. According to the Zillow median price for a two-bedroom unit, the average rental price is $309,370, which is approximately 11.8 times the FMR. This high price-to-FMR ratio indicates that tenants with Section 8 vouchers will face significant challenges in finding affordable housing units that meet their budget constraints. The gap between the FMR and the actual rent suggests that landlords who wish to participate in the Section 8 program must be willing to accept a much lower rent compared to the market rate. #### Affordability & Renter Profile Arlington Heights has a population of 51,835, with 22.0% of residents being renters. The occupancy rate stands at 95.8%, indicating a relatively tight rental market where most available units are occupied. Given the median household income of $128,979, it is clear that the majority of residents can afford market-rate housing. However, those who rely on Section 8 vouchers are likely to find it challenging to secure housing due to the high rent-to-FMR ratio. The typical renter in this area would need to have a substantial income or financial support beyond what the Section 8 voucher provides to afford a two-bedroom unit at the market rate. #### Investor Angle From an investor perspective, participating in the Section 8 program in Arlington Heights could be financially challenging. With the FMR for a two-bedroom unit at $2190, investors would need to ensure that their properties can generate sufficient cash flow to cover operating expenses, mortgage payments, and provide a reasonable return on investment. Given the high market rates, landlords who choose to accept Section 8 vouchers might struggle to achieve positive cash flow unless they can manage costs effectively or have properties with low mortgage payments. The investment grade for this ZIP code would be considered moderate to low for Section 8-focused investors. While there is a demand for affordable housing, the limited number of units that fall within the FMR range and the potential difficulty in attracting tenants with vouchers make it less attractive compared to other areas with higher FMRs relative to market rates. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should focus on acquiring properties that offer one-bedroom or studio units, as these are more likely to align with the FMR and attract Section 8 tenants. For example, the FMR for a one-bedroom unit is $1940, which is still far below the market rate but may provide better opportunities for positive cash flow. 2. **Consider Subsidized Housing Programs**: Given the high price-to-FMR ratio, investors might want to explore additional subsidized housing programs or partnerships that can help bridge the gap between the FMR and market rates. This could include state-level subsidies or other federal programs designed to support affordable housing. 3. **Evaluate Cost Management Strategies**: To improve the viability of Section 8 investments, investors should carefully evaluate cost management strategies. This includes reducing maintenance costs, optimizing utility usage, and potentially leveraging tax benefits associated with affordable housing projects. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 60004 (Arlington Heights, IL) is to **skip** this market. The high price-to-FMR ratio makes it difficult to find properties that can generate positive cash flow while adhering to the FMR guidelines. Additionally, the tight rental market and high median household income suggest that there are fewer opportunities for affordable housing units that align with the FMR. Investors looking to participate in the Section 8 program would be better served by exploring other ZIP codes with more favorable FMR-to-market rate ratios.

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.