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 | $2,120 |
| 1 Bedroom | $2,250 |
| 2 Bedrooms | $2,540 |
| 3 Bedrooms | $3,270 |
| 4 Bedrooms | $3,730 |
| 5 Bedrooms | $4,327 |
| 6 Bedrooms | $4,846 |
| 7 Bedrooms | $5,234 |
| 8 Bedrooms | $5,496 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,540 | $249,537 | 1.02% | B |
| 3BR | $3,270 | $313,680 | 1.04% | B |
| 4BR | $3,730 | $430,972 | 0.87% | C |
U.S. Census Bureau data (2024)
ZIP code 60042, located in Island Lake, IL, falls within the larger Chicago-Joliet-Naperville, IL HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 60042 is set at $2130 for fiscal year 2024. This figure is higher than the typical market rent of $1852, indicating that while there might be some rental pressure, the FMR is designed to reflect a reasonable estimate of housing costs for the area.
The median home value in ZIP 60042 is $295,368. This is generally lower than what one would expect in many parts of the Chicago metro area, where home values can be significantly higher due to the urban core's desirability and associated costs. However, it still represents a solid investment, especially when considering the suburban location and potential for appreciation.
The renter share in ZIP 60042 stands at 17.1%, which is relatively low compared to other areas within the Chicago-Joliet-Naperville, IL HUD Metro FMR Area. In urban cores, the renter share tends to be much higher due to the concentration of renters in densely populated areas. A lower renter share suggests that homeownership is more prevalent, potentially leading to a more stable and less volatile rental market.
Given the specific figures, ZIP 60042 appears to be a mid-tier neighborhood within the Chicago-Joliet-Naperville, IL HUD Metro FMR Area. The FMR is above the market rent, but the home values are lower than those typically found in more urbanized sections of the metro area. This combination could indicate a balanced market, neither undervalued nor overpriced, making it suitable for landlords and small-portfolio investors looking for moderate risk and reward.
There is no significant divergence between the high renter share and below-metro home values that would suggest a particular sweet spot for Section 8 properties. However, the lower home values combined with a reasonable FMR and market rent could make this area attractive for investors seeking to balance affordability with the benefits of being part of a major metropolitan 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.