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 | $1,900 |
| 1 Bedroom | $2,020 |
| 2 Bedrooms | $2,280 |
| 3 Bedrooms | $2,930 |
| 4 Bedrooms | $3,350 |
| 5 Bedrooms | $3,886 |
| 6 Bedrooms | $4,352 |
| 7 Bedrooms | $4,700 |
| 8 Bedrooms | $4,935 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,280 | $313,353 | 0.73% | D |
| 3BR | $2,930 | $618,645 | 0.47% | F |
| 4BR | $3,350 | $957,963 | 0.35% | F |
| 5BR | $3,886 | $1,459,689 | 0.27% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP code 60044 (Lake Bluff, IL) for Section 8 properties, follow this decision tree:
Step 1: Does the Fair Market Rent (FMR) of $2070 cover the debt service on a $632,262 property?
No. The FMR of $2070 does not clear the debt service on a property valued at $632,262. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. With an average property value this high, the monthly rental income would likely be insufficient to meet these financial obligations without significant equity or low financing rates. This makes the investment risky and not advisable based solely on Section 8 income.
Yes. If you have a lower debt service due to substantial equity, low interest rates, or other factors, proceed to Step 2.
Step 2: Is the market rent of $1,750 (from Census ACS) above, at, or below the FMR?
Below FMR. The market rent of $1,750 is below the FMR of $2070. This indicates that the area has relatively affordable housing compared to what Section 8 tenants can afford. However, this also means that landlords might not fully utilize the potential rental income from their properties.
At or Above FMR. If market rents were closer to or exceeded the FMR, it would suggest a better alignment between market conditions and Section 8 funding. Since the market rent is below the FMR, this scenario does not apply.
Step 3: Do the 29.0% of renters and the unknown days on market (DOM) indicate sufficient demand?
It depends. With 29.0% of the population being renters, there is a moderate level of demand for rental properties. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties are leased. A higher DOM could indicate lower demand or longer vacancy periods, which would affect cash flow negatively. Conversely, a low DOM suggests strong demand and quick leasing times. Without this critical piece of information, it's challenging to make a definitive recommendation.
In conclusion, unless a landlord has a unique financial situation that allows the FMR to cover debt service on a $632,262 property, investing in ZIP 60044 for Section 8 purposes is generally not recommended. The market rent being below the FMR and the uncertain demand due to missing DOM data further complicate the decision. Landlords must carefully consider their financial standing and local market dynamics before making an investment decision.
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.