Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,600 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,820 |
| 5 Bedrooms | $3,271 |
| 6 Bedrooms | $3,664 |
| 7 Bedrooms | $3,957 |
| 8 Bedrooms | $4,155 |
To determine if you should invest in ZIP 60039 for Section 8 properties, follow this decision tree:
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent (FMR) for ZIP 60039 in fiscal year 2024 is $1720. Calculate your DSCR by comparing this figure to the total debt service of the property. If $1720 does not cover the debt service, the answer is No. Do not proceed further.
Step 2: Market Rent Comparison
If the FMR covers the debt service, next compare the FMR to the market rent. The data provided does not specify the market rent for ZIP 60039. To make an informed decision, you must research the local market rents. If the market rent is significantly above $1720, landlords might prefer traditional market tenants over Section 8 vouchers, leading to a No. If the market rent is around or below $1720, continue to Step 3.
Step 3: Rental Demand Analysis
Assess the rental demand in ZIP 60039. The percentage of renters and the days on market (DOM) are critical indicators. Without specific percentages and DOM data, evaluate based on general principles. If the percentage of renters is high and the DOM is low, indicating strong demand, the answer is Yes. If the percentage of renters is low or DOM is high, suggesting weak demand, the answer is No.
In cases where the percentage of renters is moderate and DOM is average, the answer depends on other factors such as property condition, location within the zip code, and competition from similar properties. A detailed analysis of these factors would be necessary to make a final decision.
Note: For precise answers, you need to fill in the blanks with actual data regarding market rent, percentage of renters, and DOM. This will provide a clearer path through the decision tree.
Data Sources: FMR data from HUD (2027).
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.