Section 8 Fair Market Rent (FMR) for ZIP 60062 - 2027

Investment Score for ZIP 60062

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	$2,210
1 Bedroom	$2,350
2 Bedrooms	$2,650
3 Bedrooms	$3,410
4 Bedrooms	$3,890
5 Bedrooms	$4,512
6 Bedrooms	$5,053
7 Bedrooms	$5,457
8 Bedrooms	$5,730

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,350	$206,529	1.14%	B
2BR	$2,650	$415,456	0.64%	D
3BR	$3,410	$609,635	0.56%	F
4BR	$3,890	$898,141	0.43%	F
5BR	$4,512	$1,191,968	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60062 (Northbrook, IL) #### Section 8 Voucher Dynamics In Northbrook, the Fair Market Rent (FMR) for a two-bedroom unit is set at $2,370 per month for 2026. This amount represents approximately 19.8% of the median household income of $143,323, indicating that it is relatively affordable for those who qualify for Section 8 vouchers. However, the actual rent for a two-bedroom unit in Northbrook is significantly higher, with the Zillow median price being $397,212. The price-to-FMR ratio is 14.0x, meaning that the average market rent for a two-bedroom unit is about $33,180 annually, which is nearly 14 times the FMR. This stark difference between FMR and actual market rents poses significant constraints for voucher holders. For instance, a voucher holder would need to find a landlord willing to accept a rent of $2,370, which is far below the market rate. Additionally, the limited number of units available at or below the FMR could make it challenging for voucher recipients to secure housing in this area. #### Affordability & Renter Profile Northbrook has a population of 41,406, with only 17.1% of residents being renters. This indicates a predominantly owner-occupied market, where the majority of the population owns their homes rather than renting. Given the high median household income, it is likely that the renters in this area are also financially stable individuals or families who can afford higher rental rates. The occupancy rate of 91.5% suggests that the rental market is fairly tight, with most available units being occupied. This tightness could further exacerbate the challenges faced by voucher holders, as landlords might be less inclined to accept lower rents when there is a strong demand for higher-priced rentals. #### Investor Angle From an investor perspective, the ZIP code 60062 presents a mixed picture. While the FMR is set at $2,370 for a two-bedroom unit, the actual market rent is much higher, at around $33,180 annually. If an investor were to purchase a property at the Zillow median price of $397,212 and rent it out at the FMR, they would face significant financial pressure due to the low rental yield relative to the purchase price. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the costs associated with owning and maintaining the property. Assuming a conservative estimate of 1% annual property taxes and another 1% for maintenance and other expenses, the total cost would be approximately $7,944 annually. With a rental income of $28,440 ($2,370 x 12 months), the net cash flow would be negative, indicating that investing in properties in this ZIP code at the FMR level would not be financially viable for most investors. The investment grade for this ZIP code is likely to be low due to the high purchase price and the difficulty in finding tenants willing to pay the FMR. Investors seeking to maximize returns would likely find better opportunities in areas with a higher proportion of renters and lower median home values. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as studios or one-bedroom apartments. The FMR for a one-bedroom unit is $2,100, which is still significantly below the market rate but may offer slightly better cash flow potential compared to larger units. A one-bedroom unit rented at FMR would generate $25,200 annually, reducing the gap between rental income and property costs. 2. **Target Areas with Higher Renter Concentration**: Since Northbrook has a low percentage of renters, investors might want to look into neighboring ZIP codes with higher renter concentrations. This would increase the likelihood of finding tenants willing to pay the FMR and reduce the risk of vacancy. 3. **Consider Alternative Investment Strategies**: Given the tight rental market and the high purchase prices, alternative strategies such as short-term rentals or flipping properties might provide better returns. Short-term rentals can often command higher rates than long-term rentals, while flipping properties could take advantage of the high median home value to achieve substantial profits. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 60062 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to find properties that can be rented out profitably at the FMR. Additionally, the low percentage of renters and the high median household income suggest that the demand for affordable housing is limited. Investors looking to capitalize on Section 8 vouchers would likely find more favorable conditions in areas with a higher concentration of renters and lower median home values.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.