Section 8 Fair Market Rent (FMR) for ZIP 60040 - 2027

Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, IL HUD Metro FMR Area

Investment Score for ZIP 60040

Monthly Rent (2BR)

$2,550

Median Price (2BR)

$356,373

1% Rule

0.72%

Annual Yield

8.59%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,130
1 Bedroom	$2,260
2 Bedrooms	$2,550
3 Bedrooms	$3,280
4 Bedrooms	$3,750
5 Bedrooms	$4,350
6 Bedrooms	$4,872
7 Bedrooms	$5,262
8 Bedrooms	$5,525

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,550	$356,373	0.72%	D
3BR	$3,280	$543,754	0.6%	D
4BR	$3,750	$859,510	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

5,301

Median Household Income

$107,875

Housing Units

2,076

Renter Percentage

44.0%

Occupancy Rate

97.5%

Renter Occupied

892

The ZIP code 60040, encompassing Highwood, IL, offers a niche market for real estate investment, particularly in rental properties. Nestled in Lake County, this area is known for its proximity to Chicago, making it attractive for those seeking a suburban lifestyle with easy access to urban amenities.

Fair Market Rent (FMR): The FMR for a two-bedroom apartment in ZIP 60040 for fiscal year 2024 is set at $2000, indicating a stable baseline for rental pricing.
Market Rent (ZORI): According to Zillow's Rent Index (ZORI), the average market rent for properties in this area is $2,237, slightly above the FMR, suggesting a healthy demand for rental units.
Median Home Value: The median home value in ZIP 60040 stands at $468,070, which is a significant figure for potential property investments.
Renter Share: With 44.0% of residents being renters, there is a notable portion of the population that prefers leasing over homeownership, creating a consistent rental market.
Days on Market (DOM): Unfortunately, the specific days on market for rentals in this area is not available, which could be due to limited data or a very active market where properties do not stay listed long.
Median Income: The median household income in the area is $107,875, providing evidence that tenants can afford higher rents, supporting the viability of rental investments.

The combination of a robust median income and a substantial renter share points towards a promising rental market in Highwood, IL. Investors can leverage the established Fair Market Rent while aiming to capture the slightly higher market rents indicated by ZORI. The median home value suggests a well-established neighborhood with potential for both appreciation and rental income. However, the lack of specific Days on Market data might indicate a highly competitive market, where properties are quickly leased, but also where competition among landlords is fierce. This analysis underscores the importance of maintaining high-quality rental properties to attract and retain tenants in ZIP 60040.

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.