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 | $1,890 |
| 1 Bedroom | $2,010 |
| 2 Bedrooms | $2,270 |
| 3 Bedrooms | $2,920 |
| 4 Bedrooms | $3,330 |
| 5 Bedrooms | $3,863 |
| 6 Bedrooms | $4,327 |
| 7 Bedrooms | $4,673 |
| 8 Bedrooms | $4,907 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,270 | $260,935 | 0.87% | C |
| 3BR | $2,920 | $324,738 | 0.9% | C |
| 4BR | $3,330 | $452,368 | 0.74% | D |
| 5BR | $3,863 | $537,881 | 0.72% | D |
U.S. Census Bureau data (2024)
ZIP 60051, located within the Chicago-Joliet-Naperville, IL HUD Metro FMR Area, serves as a cash-flow anchor in a Section 8 portfolio strategy. The Fair Market Rent (FMR) for the area is set at $1970 for FY 2024, which stands significantly above the current market rent of $1637. This $333 spread per unit annually provides a reliable cushion against market fluctuations, ensuring steady income for landlords and small-portfolio investors.
The median home value in ZIP 60051 is $318,389, indicating a relatively stable housing market. However, the key factor that makes this ZIP code a cash-flow anchor is the substantial difference between the HUD-set FMR and the actual market rent. This allows investors to leverage the government's rental assistance program without risking lower-than-market returns.
Moreover, the low 0.2% price-cut share and a 25-day days on market (DOM) suggest a competitive but not overly saturated rental market. While these factors contribute to the overall health of the market, they do not outweigh the primary role of cash-flow stability provided by the high FMR relative to market rents.
The 13.8% renter share and median income of $100,762 could imply potential for diversification, as higher-income renters might be willing to pay more in a tight rental market. However, the primary focus for Section 8 investors should remain on the guaranteed cash flow rather than speculative appreciation plays or diversification strategies.
In conclusion, ZIP 60051 is best suited as a cash-flow anchor due to the significant spread between the FMR and market rent, providing a secure and predictable revenue stream for Section 8 portfolio holders.
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.