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 | $2,520 |
| 1 Bedroom | $2,670 |
| 2 Bedrooms | $3,020 |
| 3 Bedrooms | $3,880 |
| 4 Bedrooms | $4,440 |
| 5 Bedrooms | $5,150 |
| 6 Bedrooms | $5,768 |
| 7 Bedrooms | $6,229 |
| 8 Bedrooms | $6,540 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,670 | $197,933 | 1.35% | A |
| 2BR | $3,020 | $342,861 | 0.88% | C |
| 3BR | $3,880 | $452,533 | 0.86% | C |
| 4BR | $4,440 | $551,535 | 0.81% | C |
| 5BR | $5,150 | $730,252 | 0.71% | D |
U.S. Census Bureau data (2024)
Morton Grove, IL, represented by ZIP code 60053, is a suburban community with a total population of 24,619. The neighborhood is predominantly owner-occupied, with only 14.8% of residents being renters. This indicates a relatively low demand for rental properties, which could suggest a competitive market for landlords. The area is economically robust, boasting a median household income of $111,116, which places it well above the national average. Additionally, the median home value in Morton Grove stands at $430,730, reflecting the high cost of living and property values in the region.
The economic landscape for rental properties in Morton Grove is defined by the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD), which is $2,570 for the fiscal year 2024. In comparison, the market rent, measured by the Zillow Observed Rent Index (ZORI), is slightly higher at $2,591. This close alignment between the FMR and the actual market rent suggests that the HUD subsidies are nearly covering the costs of renting in this area, making it a viable option for both hands-off voucher operators and hands-on value-add buyers.
For hands-off voucher operators, Morton Grove offers a stable environment where the HUD subsidy rates closely match the local rental market. This ensures a consistent stream of income without the need for active management. However, for those looking to add value through hands-on management, the opportunity lies in the potential to leverage the strong local economy and high property values. Value-add strategies such as renovations or improvements to amenities could increase rental income beyond the HUD subsidy rate, providing additional profit margins.
In summary, Morton Grove, IL, is an affluent suburban neighborhood with a moderate rental market. The HUD subsidy rates nearly cover the market rents, making it suitable for both passive and active investment strategies. Landlords and small-portfolio investors can expect steady returns from hands-off operations or the possibility of enhanced profitability through active property management and value-add investments.
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.