Location: Rockford, 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 | $1,370 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $204,012 | 0.8% | C |
| 3BR | $2,110 | $278,898 | 0.76% | D |
| 4BR | $2,410 | $316,430 | 0.76% | D |
| 5BR | $2,796 | $373,158 | 0.75% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 60033, which encompasses Harvard, Illinois, in McHenry County, are influenced by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, set at $1420 per month for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, ensuring it reflects the local rental market conditions accurately.
Local market rents, according to the Census ACS data, average $1,196 for a two-bedroom unit in the same area. When a landlord participates in the Section 8 program, the Housing Authority pays a portion of the rent directly to the landlord, based on the SAFMR, while the tenant pays the remaining balance. The amount paid by the tenant is typically 30% of their adjusted income, which can vary widely depending on individual circumstances.
To illustrate, if a tenant's adjusted income is $1,000 per month, they would pay $300 towards the rent. With the SAFMR at $1420, the Housing Authority would cover the difference, which is $1120 in this case. However, if the market rent is below the SAFMR, such as the average of $1,196, the Housing Authority will only reimburse up to the actual market rent. In this scenario, the Housing Authority would pay $896, and the tenant would still contribute $300, totaling the $1,196 market rent.
Utility allowances are also factored into the equation. These allowances vary but generally cover a significant portion of the tenant's utilities, reducing their out-of-pocket expenses. For instance, a utility allowance might be around $200-$300 per month, which the Housing Authority would provide to the tenant directly, not the landlord.
Landlords should note that participating in the Section 8 program means adhering to the payment standards set by the Housing Authority. If the rent exceeds the SAFMR, the landlord must absorb the excess cost, as the Housing Authority will not exceed the SAFMR in their payments. Conversely, if the rent is below the SAFMR, the landlord will receive the full market rent, with no additional surplus from the Housing Authority.
In ZIP 60033, landlords can expect a reimbursement gap when renting out a two-bedroom unit for above the local market average of $1,196 but below the SAFMR of $1420. The gap represents the difference between the market rent and the SAFMR, which the landlord must cover. If the rent is set at the market average, there is no surplus; the landlord receives the full market rent without any additional payment from the Housing Authority.
For example, if a landlord sets the rent at $1,300 for a two-bedroom unit, the Housing Authority would pay $1,000 (based on the $1420 SAFMR), and the tenant would pay $300, resulting in a $200 reimbursement gap for the landlord. If the rent is set at $1,196, the Housing Authority would pay $896, and the tenant would pay $300, covering the entire market rent with no surplus for the landlord.
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.