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 | $1,750 |
| 1 Bedroom | $1,860 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $3,080 |
| 5 Bedrooms | $3,573 |
| 6 Bedrooms | $4,002 |
| 7 Bedrooms | $4,322 |
| 8 Bedrooms | $4,538 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,100 | $249,654 | 0.84% | C |
| 3BR | $2,700 | $324,003 | 0.83% | C |
| 4BR | $3,080 | $411,731 | 0.75% | D |
| 5BR | $3,573 | $480,764 | 0.74% | D |
U.S. Census Bureau data (2024)
The ZIP code 60050 encompasses a part of McHenry, Illinois, characterized by a predominantly owner-occupied housing market where only 24.7% of the population are renters. The area has a total population of 31,781 residents, reflecting a community that is relatively stable and likely to have a mix of young families and older homeowners. With a median household income of $88,812, the neighborhood is considered middle to upper-middle class, providing a solid economic foundation for its residents.
The median home value in the area stands at $307,068, indicating that homes are moderately priced, making it attractive for both first-time buyers and those looking to invest in a stable real estate market. When it comes to rental economics, the Fair Market Rent (FMR) for ZIP 60050 as of the fiscal year 2024 is set at $1,860, while the market rent, as measured by the Zillow Observed Rent Index (ZORI), is slightly higher at $1,896. This close alignment between FMR and market rents suggests that properties receiving Section 8 vouchers can be reasonably priced in line with the local rental market, without significant price gaps that might otherwise indicate a less desirable investment opportunity.
Given these economic conditions, ZIP 60050 would suit a hands-off voucher operator. The relatively low percentage of renters and the moderate income levels suggest that tenants are likely to be responsible and that there will be fewer issues with delinquency or maintenance. For a hands-on value-add buyer, the opportunity lies in identifying properties below the median value that could be renovated to command higher rents, potentially above the ZORI, thereby attracting tenants willing to pay more than the voucher amount. However, such an approach requires careful consideration of renovation costs and the potential for increased rental income.
In conclusion, ZIP 60050 offers a balanced environment for Section 8 investments, favoring those who prefer a passive role due to the stability and reasonable alignment of voucher amounts with market rents. For active investors, the potential exists but requires a thorough analysis of property values and renovation possibilities to ensure a profitable venture.
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.