Section 8 Fair Market Rent (FMR) for ZIP 60006 - 2027

FY 2027 Fair Market Rent Rates

The market analysis for Section 8 investors targeting ZIP code 60006 reveals that the HUD Fair Market Rent (FMR) for the area stands at $1680 for fiscal year 2024. This figure represents the maximum amount that a voucher tenant can pay for housing in this region. However, due to the lack of available market rent data, it's challenging to provide a direct comparison between the HUD FMR and the actual market rents.

To determine whether voucher tenants cashflow at FMR, marginally, or only with premium units, we would typically compare the HUD FMR to the average market rent. In the absence of market rent data, we cannot make this determination accurately. Nevertheless, the median home value in ZIP 60006 is also not available, which means deriving a precise rent-to-price ratio is not feasible with the current data set.

The days on market (DOM) and the percentage of price cuts are critical metrics when assessing the balance between renting and buying. These figures help understand how quickly properties sell and the likelihood of needing to reduce asking prices to attract buyers. Unfortunately, the median DOM and the percentage of price cuts are not provided, making it difficult to assess the rent-versus-buy dynamics in this area.

Despite these limitations, the strength of the Section 8 program in ZIP 60006 lies in its stability. The consistent rental income from voucher tenants provides a reliable source of cash flow, which is essential for both landlords and small-portfolio investors. Stability is the strongest investor angle in this scenario, given the guaranteed rent payments and the predictability of the Section 8 funding.

Data Sources: FMR data from HUD (2027).

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.