Section 8 Fair Market Rent (FMR) for ZIP 60056 - 2027

Investment Score for ZIP 60056

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	$1,700
1 Bedroom	$1,810
2 Bedrooms	$2,040
3 Bedrooms	$2,620
4 Bedrooms	$3,000
5 Bedrooms	$3,480
6 Bedrooms	$3,898
7 Bedrooms	$4,210
8 Bedrooms	$4,421

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
1BR	$1,810	$183,949	0.98%	C
2BR	$2,040	$283,251	0.72%	D
3BR	$2,620	$447,765	0.59%	F
4BR	$3,000	$567,011	0.53%	F
5BR	$3,480	$682,956	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60056 (Mount Prospect, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 60056 in Mount Prospect, Illinois, as of 2026, is set at $1910 for a two-bedroom unit. This figure represents 22.5% of the median household income in the area, which stands at $101,922. However, the actual rental market in Mount Prospect is significantly higher than the FMR. For instance, the Zillow median price for a two-bedroom home is $289,300, which translates to a monthly mortgage payment far exceeding the FMR when considering typical interest rates and down payments. The price-to-FMR ratio for a two-bedroom unit is 12.6x, indicating that actual rents are much higher than the FMR. This discrepancy places significant constraints on voucher holders. With the FMR being so low compared to actual market rents, it is challenging for tenants to find units that accept their vouchers. Additionally, landlords who do accept vouchers may struggle to cover their costs, given the high price-to-FMR ratio. #### Affordability & Renter Profile The renter population in Mount Prospect makes up 31.3% of the total population, which is 55,818 people. This means there are approximately 17,466 renters in the area. Given the occupancy rate of 95.8%, it suggests that the rental market is quite tight, with very few vacant units available. The median household income of $101,922 indicates that the area is relatively affluent, but the high rent-to-income ratio implies that renting can be a financial strain for many residents. The FMR for a three-bedroom unit is $2460, which is still below what most units in the area would realistically rent for. This suggests that the market is likely undersupplied with affordable units, especially for families needing larger spaces. The tight market conditions make it difficult for lower-income renters to find suitable housing, even with vouchers. #### Investor Angle From an investor’s perspective, the ZIP code 60056 presents a mixed picture. While the median household income is high, the actual rents are also quite high, making it challenging to achieve cash flow positivity at the FMR levels. A two-bedroom unit at the FMR of $1910 would not cover the mortgage payment for a property priced at $289,300. Therefore, the investment grade for properties in this ZIP code that rely solely on FMR would be considered poor. However, if an investor can secure a property at a price closer to the FMR or find ways to reduce operating costs, they might be able to achieve better cash flow. The high demand and tight market suggest that rental properties could appreciate in value over time, which could provide capital gains benefits. Nonetheless, relying on Section 8 vouchers alone would not be financially viable due to the low FMR compared to actual market rents. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the high FMR for larger units, such as three-bedroom ($2460) and four-bedroom ($2850), investors should consider acquiring properties that offer these sizes. Larger units are more likely to attract families who need the space and are willing to pay higher rents, potentially aligning better with the actual market rates. 2. **Negotiate with Landlords**: Investors should work closely with landlords to negotiate terms that allow for higher rents while still accepting Section 8 vouchers. This could involve offering incentives like guaranteed timely payments or assistance with tenant placement services. By doing so, landlords can be encouraged to accept vouchers without suffering significant financial losses. 3. **Consider Alternative Financing**: Given the high price-to-FMR ratio, traditional financing might not be sufficient to ensure profitability. Investors should explore alternative financing options, such as government grants, tax credits, or partnerships with non-profit organizations that focus on affordable housing. These sources could help bridge the gap between the FMR and actual market rents. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 60056 is to **Skip**. The high price-to-FMR ratio and tight rental market make it difficult to achieve cash flow positivity solely through Section 8 vouchers. While the area has a strong economic base and high demand for rentals, the mismatch between FMR and actual market rents poses significant challenges. Investors looking to enter this market should consider diversifying their strategies beyond just Section 8 vouchers to ensure financial viability.

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.