Section 8 Fair Market Rent (FMR) for ZIP 60060 - 2027

Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, IL HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,830
1 Bedroom	$1,940
2 Bedrooms	$2,190
3 Bedrooms	$2,820
4 Bedrooms	$3,220
5 Bedrooms	$3,735
6 Bedrooms	$4,183
7 Bedrooms	$4,518
8 Bedrooms	$4,744

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

37,344

Median Household Income

$110,335

Housing Units

13,986

Renter Percentage

26.2%

Occupancy Rate

96.8%

Renter Occupied

3,546

Housing Authorities Serving ZIP 60060

Housing Authority of the County of Lake, IL. (Grayslake, IL) - 3,282 Section 8 vouchers
Housing Authority of the City of Waukegan (Waukegan, IL) - 1,254 Section 8 vouchers
Housing Authority of the City of North Chicago, IL (North Chicago, IL) - 546 Section 8 vouchers

To determine if a landlord should buy in ZIP 60060 (Mundelein, IL) for Section 8 purposes, follow this decision tree based on the provided data.

1) Does FMR $2000 (zip FY 2024) clear debt service on a $383,998 property?

No: The Fair Market Rent (FMR) of $2000 is unlikely to cover the debt service on a property valued at $383,998. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. At this price point, the FMR does not provide sufficient income to offset these expenses reliably.

2) Is market rent $2,367 (ZORI) above, at, or below FMR?

Above: The Zillow Observed Rental Index (ZORI) of $2,367 is higher than the FMR of $2000. This indicates that market rents exceed what Section 8 will pay, suggesting that landlords might need to consider other rental options or face lower income compared to market rates when relying solely on Section 8 tenants.

3) Are 26.2% renters + 12-day DOM enough demand?

It Depends: Mundelein has a rental rate of 26.2%, which is relatively low but still represents a significant portion of the housing market. Additionally, the Days on Market (DOM) of 12 suggests that properties are rented quickly. However, the demand for Section 8 specifically is harder to gauge without knowing the number of vouchers available or the local waiting list length. Landlords should also assess the competition from other landlords who accept Section 8 and the overall economic conditions of the area.

In conclusion, while Mundelein offers quick property turnover and a modest rental market, the FMR of $2000 is insufficient to cover the debt service on a $383,998 property. The ZORI being above the FMR further complicates the decision, as it means landlords could potentially earn more by renting to non-Section 8 tenants. Therefore, the decision to invest in this zip code for Section 8 purposes hinges on the specific financial goals and risk tolerance of the landlord, alongside a deeper analysis of local Section 8 demand.

Data Sources: FMR data from HUD (2027). 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.