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 | $2,520 |
| 1 Bedroom | $2,670 |
| 2 Bedrooms | $3,020 |
| 3 Bedrooms | $3,880 |
| 4 Bedrooms | $4,440 |
| 5 Bedrooms | $5,150 |
| 6 Bedrooms | $5,768 |
| 7 Bedrooms | $6,229 |
| 8 Bedrooms | $6,540 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,670 | $278,789 | 0.96% | C |
| 2BR | $3,020 | $483,039 | 0.63% | D |
| 3BR | $3,880 | $705,744 | 0.55% | F |
| 4BR | $4,440 | $1,154,483 | 0.38% | F |
| 5BR | $5,150 | $1,885,666 | 0.27% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 60091 (Wilmette, IL) for Section 8 should follow this decision tree:
Step 1: Determine if the Fair Market Rent (FMR) of $2350 can cover the debt service on a property valued at $960,787.
If the debt service on a $960,787 property is less than $2350 per month, then the answer is Yes. The FMR is sufficient to meet the financial obligations of owning the property.
If the debt service on a $960,787 property exceeds $2350 per month, then the answer is No. The FMR does not provide enough income to cover the cost of ownership.
Step 2: Compare the Zillow Observed Rent Index (ZORI) of $3,667 to the FMR of $2350.
If market rent ($3,667) is significantly higher than the FMR ($2350), then the answer is It Depends. While the market rent is attractive, it must be weighed against the ability to secure Section 8 tenants who are limited to paying the FMR.
If market rent is close to or below the FMR, then the answer is No. The gap between what the market demands and what Section 8 allows is too wide to justify investment.
Step 3: Evaluate the demand factors: 12.1% of the population are renters and the average days on market (DOM) is 6 days.
If the 12.1% rental rate combined with a low DOM of 6 days indicates strong demand for rental properties, then the answer is Yes. There is a sufficient number of potential tenants interested in renting, which increases the likelihood of finding a Section 8 tenant.
If the rental rate is low and the DOM is high, then the answer is No. This suggests weak demand for rentals, making it difficult to find tenants, including those eligible for Section 8.
Note that these decisions depend on the specific financial details of the property and the landlord's investment goals. For instance, if the debt service is only slightly above the FMR, the landlord might still consider investing if they expect other benefits such as long-term stability or appreciation in property value.
For a final decision, a landlord should also factor in additional considerations such as property management costs, vacancy rates, and local housing policies.
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.