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 | $1,450 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,540 | $89,653 | 1.72% | A+ |
| 2BR | $1,740 | $233,316 | 0.75% | D |
| 3BR | $2,240 | $310,984 | 0.72% | D |
| 4BR | $2,560 | $433,512 | 0.59% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 60020, which includes Fox Lake, IL, stands at $73,949. This figure provides a baseline for understanding the financial capacity of the typical household in the area. When compared to the market rate rent of $1,221, it becomes evident that a significant portion of the average household’s income would be dedicated to housing costs. Affordability guidelines suggest that rent should not exceed 30% of a household's income; however, at $1,221, rent represents approximately 47% of the median income. This indicates a strain on household budgets.
The Federal Market Rent (FMR) for ZIP 60020 in fiscal year 2024 is set at $1,630. This is the standard amount that Section 8 vouchers will cover for a unit in the area. Given the discrepancy between the market rate and the FMR, landlords might find themselves in a challenging position when deciding whether to accept voucher payments or seek cash-paying tenants. The FMR exceeds the market rate by $409, meaning landlords could potentially receive higher rent payments from voucher holders than from the typical market rate tenant.
With 27.1% of the 10,970 population being renters, there is a notable segment of the community that relies on rental housing. The affordability gap between the median income and both the market rate and FMR suggests that many households are looking for assistance to meet their housing needs. This creates a competitive environment for landlords who must decide how to best allocate their units to ensure profitability and occupancy.
Landlords considering their strategy for voucher versus cash-pay tenants should weigh the benefits of guaranteed, government-backed payments against the potential for higher rents from cash-paying tenants. However, given the higher FMR compared to the market rate, accepting vouchers could provide a steady stream of income without compromising on rental rates. It also aligns with the needs of a substantial portion of the local renting population, ensuring a stable occupancy rate.
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.