Section 8 Fair Market Rent (FMR) for ZIP 60095 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 60095, located in the Chicago-Joliet-Naperville County area, are governed by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1680 per month for fiscal year 2024. This SAFMR is specifically tailored to reflect the rental market conditions within this particular ZIP code, ensuring that the rates are appropriate for the local context.

A landlord participating in the Section 8 program will receive payments based on a voucher system. The voucher amount covers the difference between the tenant's contribution and the total rent. The tenant's portion is typically 30% of their adjusted income, which can vary depending on the individual's financial situation. For simplicity, let's assume an average tenant contribution of $500 towards the rent. This leaves the landlord with a subsidy payment of $1180 from the housing authority to make up the total rent of $1680.

In addition to the base rent, the voucher also includes utility allowances. These allowances are designed to cover the cost of utilities such as electricity, water, and gas. The exact amount of these allowances varies but can be estimated around $200 for a two-bedroom unit. Therefore, the total monthly reimbursement a landlord might expect from a Section 8 voucher for a 2BR property would be $1680 for rent plus $200 for utilities, totaling $1880.

However, it's important to note that the local market rent is currently unavailable, which means there isn't a direct comparison to see if the SAFMR aligns with what landlords could charge in a competitive market. This lack of information makes it difficult to assess whether the Section 8 reimbursement is above or below the market rate for similar properties in the same ZIP code.

To calculate the typical reimbursement gap or surplus, we need to compare the SAFMR with the market rent. Since the market rent is N/A, we cannot provide a precise figure for the gap or surplus. But if we were to consider the SAFMR alone, landlords would receive a consistent $1880 per month for a 2BR unit, assuming the tenant's contribution remains steady at $500 and the utility allowance is $200. This provides a reliable income stream, though it may not fully account for any discrepancies between the SAFMR and the actual market rates.

Data Sources: FMR data from HUD (2027).

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.