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 | $1,540 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $2,700 |
| 5 Bedrooms | $3,132 |
| 6 Bedrooms | $3,508 |
| 7 Bedrooms | $3,789 |
| 8 Bedrooms | $3,978 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,840 | $216,782 | 0.85% | C |
| 3BR | $2,370 | $270,223 | 0.88% | C |
| 4BR | $2,700 | $321,153 | 0.84% | C |
| 5BR | $3,132 | $346,388 | 0.9% | C |
U.S. Census Bureau data (2024)
ZIP code 60087, located in Waukegan, IL, is characterized by a substantial renter population. With 40.1% of the 27,293 residents being renters, it represents a significant portion of the housing market. This indicates that there is likely a strong demand for rental properties, including those that accept Section 8 vouchers. The median household income in this area is $76,738, which provides context for the affordability of the average market rent of $1,418.
The typical rent consumes approximately 18.5% of the median household income, calculated by dividing the market rent by the annual income and multiplying by 100. This percentage is relatively low, suggesting that the majority of residents can afford the current market rents without assistance. However, the Federal Market Rent (FMR) for FY 2024 is set at $1,570, slightly higher than the current market rent. This implies that some tenants may require assistance to cover the cost of renting, making Section 8 vouchers particularly relevant.
In comparison to the FMR, the current market rent is 90.3% of the FMR, indicating that properties priced at the market rate are within the bounds of what is considered affordable by federal standards. Landlords in this ZIP code can expect a mix of tenants, including those who may rely on Section 8 vouchers to help meet their rental obligations. Given the demographic, these tenants will be individuals or families whose incomes are below the median but still within the range where they can afford decent housing with government assistance.
To summarize, Waukegan's ZIP 60087 is a renter-heavy area with a notable demand for Section 8 vouchers. While the median income supports the current market rent comfortably, the proximity to the FMR suggests that there is a segment of the population that would benefit from rental assistance programs. Landlords should anticipate a diverse tenant pool, with a portion of tenants utilizing Section 8 vouchers to supplement their rental payments.
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.