Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, 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 | $1,840 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,200 |
| 3 Bedrooms | $2,830 |
| 4 Bedrooms | $3,230 |
| 5 Bedrooms | $3,747 |
| 6 Bedrooms | $4,197 |
| 7 Bedrooms | $4,533 |
| 8 Bedrooms | $4,760 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,950 | $187,430 | 1.04% | B |
| 2BR | $2,200 | $258,000 | 0.85% | C |
| 3BR | $2,830 | $484,982 | 0.58% | F |
| 4BR | $3,230 | $676,812 | 0.48% | F |
| 5BR | $3,747 | $786,257 | 0.48% | F |
U.S. Census Bureau data (2024)
Arlington Heights, IL, located within the ZIP code 60005, is best suited as a cash-flow anchor in a Section 8 portfolio strategy. The area's Fair Market Rent (FMR) for fiscal year 2024 is set at $1820, closely aligning with the market rent of $1,809. This tight correlation ensures steady and predictable cash flows for landlords participating in the Section 8 program.
The median home value in Arlington Heights is $426,642, which is substantial but does not significantly affect the rental dynamics. With a spread of only $11 between the FMR and the market rent, landlords can expect consistent occupancy rates and minimal vacancy costs, making this location an ideal choice for those looking to stabilize their investment returns.
Arlington Heights also offers a low risk of price competition, with a price-cut share of just 0.2%. This indicates that few landlords are willing to reduce their rents to attract tenants, thus maintaining the overall rental rates in the area. Additionally, the Days on Market (DOM) of 11 days suggests a strong demand for rental properties, ensuring quick tenancy and minimizing idle periods.
While the area has a renter share of 35.9%, indicating a significant portion of the population rents rather than owns homes, this figure does not overshadow the primary role of Arlington Heights as a cash-flow anchor. The median income of $99,743 supports the stability of the rental market, as tenants have a higher likelihood of being able to afford the rent and maintain timely payments.
In summary, Arlington Heights, IL, within ZIP code 60005, serves as a reliable cash-flow anchor due to its alignment between FMR and market rents, low price-cut share, quick DOM, and stable median income levels. These factors ensure that landlords can depend on steady cash flows while participating in the Section 8 program.
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.