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 | $1,860 |
| 1 Bedroom | $1,970 |
| 2 Bedrooms | $2,230 |
| 3 Bedrooms | $2,870 |
| 4 Bedrooms | $3,280 |
| 5 Bedrooms | $3,805 |
| 6 Bedrooms | $4,262 |
| 7 Bedrooms | $4,603 |
| 8 Bedrooms | $4,833 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,970 | $183,904 | 1.07% | B |
| 2BR | $2,230 | $273,193 | 0.82% | C |
| 3BR | $2,870 | $401,147 | 0.72% | D |
| 4BR | $3,280 | $490,688 | 0.67% | D |
| 5BR | $3,805 | $537,815 | 0.71% | D |
U.S. Census Bureau data (2024)
Des Plaines, ZIP code 60016, functions as a mature suburban node anchored by logistics and healthcare services. The area is characterized by a blend of post-war housing and commercial corridors, benefiting from its proximity to O'Hare International Airport. A key institution driving local stability is Advocate Lutheran General Hospital, which serves as a major employer and regional medical destination, reinforcing the neighborhood’s appeal for working renters seeking convenient commutes.
From a numerical standpoint, the market presents a specific challenge for voucher reliance. The FY2024 HUD SAFMR for a 2-bedroom unit is $1,790, whereas the current Zillow market rent sits at $2,134, creating a gap of $344. Investors looking at entry-level assets face a median 2BR sale price of $262,975, with broader area home values averaging $320,466. Inventory moves deliberately, with a median of 62 days on market, suggesting a competitive but not frenzied sales environment.
Despite the monthly gap, demand fundamentals remain solid. With a renter share of 32.4% and a median household income of $86,571, the tenant pool includes a mix of service workers and airport staff who may qualify for voucher supplements. The presence of highly rated public schools and Metra commuter lines into Chicago enhances the location’s long-term desirability, ensuring that properties remain attractive to families even if program rates lag slightly behind market peaks.
The Section 8 verdict for 60016 leans toward stability and appreciation over immediate cashflow. Because the $344 negative variance between market rent and the SAFMR is significant relative to margins, investors cannot rely solely on the guaranteed payment to maximize monthly yield. However, the median home value of $320,466 and strong employment base indicate equity growth potential, making this a hold-play rather than a high-cashflow flip.
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.