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 | $2,470 |
| 1 Bedroom | $2,620 |
| 2 Bedrooms | $2,960 |
| 3 Bedrooms | $3,810 |
| 4 Bedrooms | $4,350 |
| 5 Bedrooms | $5,046 |
| 6 Bedrooms | $5,652 |
| 7 Bedrooms | $6,104 |
| 8 Bedrooms | $6,409 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,960 | $574,378 | 0.52% | F |
| 3BR | $3,810 | $918,471 | 0.41% | F |
| 4BR | $4,350 | $1,233,540 | 0.35% | F |
| 5BR | $5,046 | $1,855,399 | 0.27% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP 60045 (Lake Forest, IL) for Section 8 must evaluate several factors. The first step is to determine if the Fair Market Rent (FMR) of $2,570 for the fiscal year 2024 can cover the debt service on a property valued at $1,139,131. If the debt service is higher than the FMR, then the answer is a clear No; the property would not be financially viable under Section 8 guidelines.
If the FMR does cover the debt service, the next question is whether the market rent of $1,857 (as per Census ACS data) is above, at, or below the FMR. If the market rent is below the FMR, the landlord would be able to charge the higher FMR rate, making the property more attractive for Section 8 tenants. This scenario would lead to a Yes; the landlord should consider buying.
In the case where the market rent is at or above the FMR, the landlord cannot charge more than the FMR for Section 8 tenants, which could reduce the potential income compared to market rates. In this situation, the decision hinges on the demand for rental properties. With 11.0% of residents being renters and an average of 7 days on the market before renting (DOM), there is moderate demand. However, this alone does not guarantee profitability. The landlord must weigh the demand against the reduced income potential due to the capped rent.
If the landlord determines that the demand is sufficient to ensure steady occupancy, then the answer is Yes; the landlord should proceed with the purchase. The combination of reasonable demand and the ability to charge FMR rates can make the investment worthwhile. However, if the landlord believes that the demand is insufficient or that the income from FMR will not meet their financial goals, the answer is No.
Lastly, if the landlord finds that the FMR does not cover the debt service, they must either find a property with a lower value or seek alternative sources of funding or revenue to offset the shortfall. In such a case, the answer is No; the current property does not meet the financial requirements for a successful Section 8 investment.
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.