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 | $1,810 |
| 1 Bedroom | $1,920 |
| 2 Bedrooms | $2,170 |
| 3 Bedrooms | $2,790 |
| 4 Bedrooms | $3,190 |
| 5 Bedrooms | $3,700 |
| 6 Bedrooms | $4,144 |
| 7 Bedrooms | $4,476 |
| 8 Bedrooms | $4,700 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,920 | $169,460 | 1.13% | B |
| 2BR | $2,170 | $231,727 | 0.94% | C |
| 3BR | $2,790 | $380,511 | 0.73% | D |
| 4BR | $3,190 | $516,740 | 0.62% | D |
| 5BR | $3,700 | $612,165 | 0.6% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 60074 (Palatine, IL) on the axes of yield and stability reveals a balanced investment opportunity. The Fair Market Rent (FMR) for the area is set at $1,780 for fiscal year 2024, which is below the market rent of $1,999. This indicates a modest yield potential for landlords and small-portfolio investors.
The median home value in Palatine is $301,833, which provides a context for property appreciation and capital investment. Given that the FMR is lower than the market rent, there is a slight upside for rental income if properties are priced competitively.
Stability is assessed through several metrics: the percentage of renters, days on market (DOM), and median household income. In ZIP 60074, 38.4% of residents are renters, indicating a moderate demand for rental housing. The average DOM is 7 days, suggesting a relatively quick turnover in listings and a stable rental market. Median household income stands at $84,089, which supports the ability of tenants to pay rent consistently.
Based on these figures, ZIP 60074 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The relatively low renter percentage compared to other areas might suggest less speculative activity, and the short DOM implies a reliable tenant pool. The income figure further reinforces the stability of the rental market, as it suggests a solid financial base for the local population.
To summarize, with a yield driven by a market rent of $1,999 and an FMR of $1,780, and stability indicated by a 38.4% renter rate, 7-day DOM, and median household income of $84,089, ZIP 60074 offers a middle-ground investment opportunity. It is neither a high-risk, high-reward market nor a low-risk, low-reward scenario, but rather a market that balances both yield and stability effectively.
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.