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 | $2,190 |
| 1 Bedroom | $2,330 |
| 2 Bedrooms | $2,630 |
| 3 Bedrooms | $3,380 |
| 4 Bedrooms | $3,860 |
| 5 Bedrooms | $4,478 |
| 6 Bedrooms | $5,015 |
| 7 Bedrooms | $5,416 |
| 8 Bedrooms | $5,687 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,330 | $287,396 | 0.81% | C |
| 2BR | $2,630 | $471,777 | 0.56% | F |
| 3BR | $3,380 | $862,849 | 0.39% | F |
| 4BR | $3,860 | $1,500,434 | 0.26% | F |
| 5BR | $4,478 | $2,481,518 | 0.18% | F |
U.S. Census Bureau data (2024)
The ZIP code 60093, located in Winnetka, IL, presents a unique challenge for renters due to its high cost of living. The median income in the area stands at $250,001, which places it well above the national average. However, despite this relatively high median income, the market rate for rent, measured by ZORI (Zillow Rent Index), is set at $2,127. This figure represents a significant portion of the monthly income for an average household, making it a tight budgetary constraint.
When comparing the market rate to the Federal Market Rate (FMR) for voucher payments, which is set at $2,560 for the fiscal year 2024, the gap becomes apparent. The FMR is designed to cover a broader range of housing costs and ensure that low-income families can find suitable housing. In Winnetka, the FMR is higher than the ZORI, suggesting that voucher holders might have more flexibility when it comes to paying rent, compared to those without vouchers.
With only 8.6% of the 19,867 population being renters, competition among landlords is likely to be fierce. The limited number of rental units means that landlords must consider both the needs of their tenants and the financial realities of the market. For those who accept vouchers, the higher FMR could translate into a more stable and predictable income stream, given that voucher payments are guaranteed by the government. On the other hand, landlords who rely solely on market-rate rents face the risk of vacancy during times when potential renters cannot afford the ZORI.
The takeaway for landlords considering whether to accept vouchers versus focusing on cash-paying tenants is clear. While cash-paying tenants might offer less paperwork and quicker transactions, the stability provided by voucher payments can be a significant advantage in a market where many households are already stretched thin by the cost of living. Accepting vouchers allows landlords to tap into a different segment of the rental market, potentially reducing vacancy rates and ensuring a steady income flow. Moreover, given the high FMR relative to the ZORI, voucher payments are more likely to cover the full cost of rent, thus minimizing financial risks.
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.