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 | $2,190 |
| 1 Bedroom | $2,320 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,370 |
| 4 Bedrooms | $3,850 |
| 5 Bedrooms | $4,466 |
| 6 Bedrooms | $5,002 |
| 7 Bedrooms | $5,402 |
| 8 Bedrooms | $5,672 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,620 | $263,752 | 0.99% | C |
| 3BR | $3,370 | $467,209 | 0.72% | D |
| 4BR | $3,850 | $668,936 | 0.58% | F |
| 5BR | $4,466 | $915,315 | 0.49% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP 60061, Vernon Hills, IL, are significant and should be carefully considered before investing. Tenant turnover is a major concern, with the market rent at $2,371 compared to the Federal Market Rent (FMR) of $2,310 for fiscal year 2024. This difference can lead to financial strain if tenants leave and new ones are not found promptly. Additionally, the vacancy exposure is notable, as the Days on Market (DOM) is only 18 days, indicating that properties may remain vacant longer than expected, reducing cash flow.
The deferred maintenance risk is also substantial. With an average home value of $449,123 and a median income of $124,468, landlords must ensure that their properties meet the required standards. The higher home values suggest that maintaining these properties to Section 8 standards could be costly, especially when considering the lower median income levels that might limit the pool of qualified tenants.
However, these risks are somewhat mitigated by the high renter share in Vernon Hills, which stands at 31.8%. High renter density typically correlates with increased demand for rental housing, including Section 8 vouchers. This demand can help stabilize occupancy rates and provide a steady stream of tenants.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 60061 is moderate. While there are significant challenges, particularly with tenant turnover and deferred maintenance costs, the high renter share offers some assurance of demand for rental units.
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.