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 | $1,960 |
| 2 Bedrooms | $2,210 |
| 3 Bedrooms | $2,840 |
| 4 Bedrooms | $3,250 |
| 5 Bedrooms | $3,770 |
| 6 Bedrooms | $4,222 |
| 7 Bedrooms | $4,560 |
| 8 Bedrooms | $4,788 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,960 | $193,963 | 1.01% | B |
| 2BR | $2,210 | $294,626 | 0.75% | D |
| 3BR | $2,840 | $404,637 | 0.7% | D |
| 4BR | $3,250 | $499,626 | 0.65% | D |
| 5BR | $3,770 | $574,925 | 0.66% | D |
U.S. Census Bureau data (2024)
In Elk Grove Village, IL (ZIP 60007), the real estate market presents a nuanced picture for both landlords and small-portfolio investors. The median home value stands at $384,384, indicating a stable housing market that has not seen significant fluctuations recently. With only 0.2% of listings having been reduced, it's evident that sellers are maintaining their prices, reflecting a level of confidence in the local market conditions.
The median days on market (DOM) of 18 days suggests that homes are selling relatively quickly, which can be attributed to a strong demand environment where buyers are willing to meet or exceed asking prices. This quick turnover signals that there is little incentive for sellers to lower their prices, thereby reinforcing the notion of robust pricing power over the next 12-24 months. Landlords and investors should expect that the current trend will likely continue, with minimal downward pressure on property values.
On the rental side, the Federal Market Rent (FMR) for ZIP 60007 in fiscal year 2024 is set at $1,880. This compares favorably to the current market rent, known as the Zillow Observed Rent Index (ZORI), which is $1,694. The gap between the FMR and the ZORI suggests that rental properties could see upward adjustments in the near term, aligning with the anticipated increase in federal rental assistance rates. For landlords, this implies a potential opportunity to raise rents without losing tenants, given the relative stability of the housing market.
Long-term investors must consider the appreciation thesis in ZIP 60007. Given the quick sales and the slight premium landlords can command on rentals, there is a realistic expectation for modest property value growth. However, the small percentage of price reductions and the quick DOM indicate a market that is well-balanced but not experiencing rapid appreciation. Therefore, the setup suggests a steady growth trajectory rather than explosive gains, making it a solid choice for those looking for consistent returns over time.
To summarize, the combination of a stable median home value, low reduction rate, and short DOM points to a market where pricing power remains strong for the foreseeable future. The favorable rent-side dynamics further support this outlook, offering landlords and investors a clear path to maintain or slightly increase their revenue streams without significant risk.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.