Section 8 Fair Market Rent (FMR) for ZIP 60014 - 2027

Investment Score for ZIP 60014

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	$1,660
1 Bedroom	$1,760
2 Bedrooms	$1,990
3 Bedrooms	$2,560
4 Bedrooms	$2,920
5 Bedrooms	$3,387
6 Bedrooms	$3,793
7 Bedrooms	$4,096
8 Bedrooms	$4,301

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,760	$172,112	1.02%	B
2BR	$1,990	$272,554	0.73%	D
3BR	$2,560	$345,400	0.74%	D
4BR	$2,920	$447,765	0.65%	D
5BR	$3,387	$569,197	0.6%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60014 (Crystal Lake, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Crystal Lake, IL, in ZIP code 60014, is set by HUD for the year 2026. The FMRs are as follows: - 0BR: $1500 - 1BR: $1610 - 2BR: $1810 (which represents 19.9% of the median household income) - 3BR: $2330 - 4BR: $2700 These FMRs represent the maximum amount that a Section 8 voucher holder can pay for rent. However, it is important to understand how these FMRs compare to actual rents in the area. Given the occupancy rate of 97.6%, it suggests that there is a high demand for rental properties, which could drive up actual rents above the FMR levels. #### Affordability & Renter Profile The population of Crystal Lake is 48,590, with 20.1% of households being renters. This indicates that approximately 9,777 households are renters. The median household income in the area is $109,016, which provides context on the economic status of the residents. The 2BR FMR of $1810 represents 19.9% of the median income, suggesting that it is relatively affordable for the average resident. However, the price-to-FMR ratio for a 2BR property is 12.2x, meaning that the Zillow median price for a 2BR home is $264,017. This implies that the actual cost of renting a 2BR property might be significantly higher than the FMR, potentially creating a challenge for voucher holders who must find units within their budget. Given the high occupancy rate and the relatively high price-to-FMR ratio, it is likely that the rental market is tight, with limited options for those relying solely on Section 8 vouchers. This could result in voucher holders having difficulty finding suitable housing, especially if landlords are unwilling to accept the lower rates set by the vouchers. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR levels. To determine this, we need to consider the actual rental costs versus the FMR. If the actual rental costs are significantly higher than the FMR, then accepting Section 8 vouchers would not be financially viable for most landlords. Given the price-to-FMR ratio of 12.2x, it is clear that the actual rental costs are much higher than the FMR. For example, a 2BR unit priced at $264,017 would have a monthly mortgage payment of around $1,320 (assuming a 4% interest rate and a 30-year fixed mortgage). Adding property taxes, insurance, and maintenance costs, the total monthly expenses could easily exceed the FMR of $1810. Therefore, landlords would likely face negative cash flow if they were to accept Section 8 vouchers at the FMR rates. In terms of investment grade, Crystal Lake appears to be a moderate to high-risk area for Section 8-focused investors due to the tight rental market and the high actual rental costs compared to FMRs. The high occupancy rate suggests strong demand, but the significant gap between actual rental costs and FMRs makes it challenging to achieve positive cash flow. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR apartments. These units typically have lower actual rental costs, making them more likely to be within the FMR range. For instance, a 1BR unit with an actual rent of $1,610 aligns closely with the FMR, providing a better chance for positive cash flow. 2. **Consider Property Location**: In a tight rental market like Crystal Lake, location plays a critical role. Investors should look for properties in less desirable areas where actual rents might be closer to the FMR. Additionally, properties near public transportation, schools, and other amenities might command higher rents, making them less attractive for Section 8 voucher holders. 3. **Evaluate Property Costs**: Before investing, carefully evaluate the total costs associated with owning and maintaining a rental property. Ensure that the mortgage payment, property taxes, insurance, and maintenance expenses do not exceed the FMR. For example, a 2BR unit with a mortgage payment of $1,320 would need additional expenses to be kept under $490 to remain within the FMR of $1810. #### Bottom Line For Section 8-focused investors, Crystal Lake, IL, in ZIP code 60014, presents a challenging environment. The tight rental market and high actual rental costs relative to FMRs make it difficult to achieve positive cash flow. Therefore, the recommendation is to **skip** this ZIP code unless you can find properties in less desirable areas or smaller units that align more closely with the FMRs. If you decide to invest, ensure that your total costs are well within the FMR limits to avoid financial losses.

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.