Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,130 |
| 1 Bedroom | $2,260 |
| 2 Bedrooms | $2,550 |
| 3 Bedrooms | $3,280 |
| 4 Bedrooms | $3,750 |
| 5 Bedrooms | $4,350 |
| 6 Bedrooms | $4,872 |
| 7 Bedrooms | $5,262 |
| 8 Bedrooms | $5,525 |
U.S. Census Bureau data (2024)
The median income in ZIP code 60088 stands at $66,008, which places significant constraints on renters' ability to afford the market rate rent of $1,843 per month. This figure represents nearly 35% of the annual income for an average household, making it a substantial portion of their earnings. To put this into perspective, let's consider the Federal Market Rent (FMR) standard for voucher payments, which is set at $2,390 for the fiscal year 2024. This amount is even higher than the market rate, indicating that voucher recipients could potentially face less financial strain compared to those paying market rates.
The fact that 99.5% of the residents are renters suggests a highly competitive market for landlords. However, given the high proportion of renters and a population of 14,400, there is a notable affordability gap. Households earning the median income would find it challenging to cover the $1,843 monthly rent without assistance, let alone the higher FMR rate of $2,390.
For landlords considering whether to accept vouchers or focus on cash-paying tenants, the data points to a strategic decision. While voucher payments ensure a steady income stream at the higher rate of $2,390, the majority of renters in this area may struggle to pay the market rate without subsidies. Accepting vouchers can provide a reliable tenant base and help fill units that might otherwise remain vacant due to the financial limitations of potential cash-paying renters.
In conclusion, landlords in ZIP code 60088 should be aware of the financial pressures faced by local renters and the implications for their rental strategies. The high percentage of renters and the affordability gap suggest that accepting vouchers could be a viable approach to maintaining occupancy and ensuring a stable income. Voucher tenants, while requiring adherence to certain regulations, offer a way to navigate the economic realities of the area effectively.
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.