Section 8 Fair Market Rent (FMR) for ZIP 60047 - 2027

Investment Score for ZIP 60047

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	$2,200
1 Bedroom	$2,340
2 Bedrooms	$2,640
3 Bedrooms	$3,400
4 Bedrooms	$3,880
5 Bedrooms	$4,501
6 Bedrooms	$5,041
7 Bedrooms	$5,444
8 Bedrooms	$5,716

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,640	$345,731	0.76%	D
3BR	$3,400	$490,009	0.69%	D
4BR	$3,880	$760,267	0.51%	F
5BR	$4,501	$988,456	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60047 (Forest Lake, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Forest Lake, IL (ZIP 60047), is set by HUD for the year 2026. The FMRs for various bedroom types are as follows: - 0BR: $1950 - 1BR: $2090 - 2BR: $2350 - 3BR: $3030 - 4BR: $3500 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, it's important to note how these FMRs compare to actual rents in the area. The price-to-FMR ratio for a 2BR unit is 12.0x, which means the median Zillow price for a 2BR unit is $339,693. This suggests that actual rents are significantly higher than the FMRs. For instance, a 2BR unit would typically cost around $28,308 annually based on the Zillow median price, whereas the FMR allows only $2350 per month or $28,200 annually. This discrepancy places a significant constraint on voucher holders, making it challenging for them to find affordable housing options within the ZIP code. #### Affordability & Renter Profile Forest Lake, IL, has a population of 44,240, with a median household income of $176,081. Only 12.1% of the population are renters, indicating a relatively low demand for rental properties compared to owner-occupied homes. The occupancy rate stands at 97.6%, suggesting that the market is quite tight, with very few vacant units available. Given the high median income and low percentage of renters, those who do rent are likely to be individuals or families who have chosen to rent rather than buy due to lifestyle preferences or financial strategies. The affordability of rental units is a critical issue for the 12.1% of renters who rely on their own resources or government assistance. With 2BR units costing $2350 per month at FMR, this represents approximately 16.0% of the median household income, which is considered affordable according to HUD standards. However, the reality is that actual rents are much higher, making it difficult for even middle-income earners to afford housing without significant financial strain. #### Investor Angle From an investor perspective, the ZIP code 60047 presents a challenging environment for cash flow-positive investments at FMR levels. Given the high actual rents and the low FMRs, landlords who accept Section 8 vouchers will face significant limitations in terms of rental income. The typical rent for a 2BR unit is $28,308 annually, while the FMR allows only $28,200 annually. This minimal difference indicates that investors would need to carefully consider the costs associated with maintaining and managing rental properties in this area. The investment grade for this ZIP code is likely to be low for Section 8-focused investors. The high price-to-FMR ratio and the tight market conditions suggest that there is limited opportunity for profit margins. Additionally, the high median income and low renter percentage indicate that the overall demand for rental properties is lower, which could result in fewer available tenants willing to use Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high actual rents and the tight market, investors might want to focus on smaller units such as 0BR or 1BR apartments. These units have FMRs of $1950 and $2090 respectively, which are lower than the FMR for larger units. While the profit margin remains slim, smaller units may be easier to fill with voucher holders. 2. **Consider Alternative Subsidies**: Since the FMRs are significantly lower than actual rents, investors should explore alternative subsidy programs that offer higher rent allowances. This could include state-specific housing assistance programs or other federal subsidies that may provide better rates. 3. **Target Areas with Higher Renter Percentage**: If possible, investors should look into neighboring areas with higher renter percentages. ZIP 60047 has only 12.1% of its population as renters, which limits the pool of potential tenants. Areas with a higher percentage of renters would likely have a more robust demand for subsidized housing. #### Bottom Line For Section 8-focused investors, the ZIP code 60047 (Forest Lake, IL) is a challenging market due to the high actual rents and the tight market conditions. The recommendation is to **Skip** this ZIP code unless you can identify alternative subsidy programs or smaller units that may be more feasible for voucher holders. The high price-to-FMR ratio and the limited number of renters make it difficult to achieve positive cash flow or maintain a competitive edge in the local rental market.

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.