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 | $2,230 |
| 1 Bedroom | $2,360 |
| 2 Bedrooms | $2,670 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $3,920 |
| 5 Bedrooms | $4,547 |
| 6 Bedrooms | $5,093 |
| 7 Bedrooms | $5,500 |
| 8 Bedrooms | $5,775 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,360 | $248,645 | 0.95% | C |
| 2BR | $2,670 | $436,863 | 0.61% | D |
| 3BR | $3,430 | $657,171 | 0.52% | F |
| 4BR | $3,920 | $963,365 | 0.41% | F |
| 5BR | $4,547 | $1,431,707 | 0.32% | F |
U.S. Census Bureau data (2024)
The ZIP code 60035, located in Highland Park, IL, presents an interesting scenario for both renters and landlords. The median household income in this area stands at $168,094, which places residents in a relatively high-income bracket. However, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is set at $2,952 per month. This figure represents the average rent paid by tenants in the area and is a key metric for understanding rental affordability.
When compared to the Fair Market Rent (FMR) standard of $2,530, which is the amount the government will pay landlords through the Housing Choice Voucher program, there is a notable difference. The FMR is lower than the ZORI, indicating that while renters have a higher income, they may still find it challenging to afford the market rate without assistance. This discrepancy highlights the potential need for some households to rely on housing vouchers to manage their living expenses effectively.
With only 16.2% of the 30,398 population being renters, the competition among landlords is likely to be intense for those seeking tenants who can pay the market rate. The limited number of renters means that landlords must be strategic in their approach to attract and retain tenants. Those willing to accept Housing Choice Vouchers could benefit from a larger pool of potential tenants, albeit at a slightly lower rent rate than the market dictates.
The affordability gap in Highland Park, IL, suggests that landlords should consider diversifying their tenant acquisition strategies. While accepting vouchers might mean a lower monthly rent compared to the ZORI of $2,952, it also opens up opportunities to secure long-term tenants who are financially stable and backed by government support. Landlords who solely focus on cash-paying tenants might face challenges in filling vacancies due to the high market rates and the smaller proportion of the population willing or able to pay such rents.
Takeaway: For landlords considering whether to accept Housing Choice Vouchers or stick to cash-paying tenants, the data points to a balanced approach. Accepting vouchers can help mitigate vacancy risks and ensure a steady stream of income, even if it's slightly below the market rate. This strategy can be particularly effective given the high market rent and the relatively low percentage of renters in the area.
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.