Location: DeKalb County, IL | Metro: DeKalb County, 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 | $1,460 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,790 |
| 4 Bedrooms | $3,200 |
| 5 Bedrooms | $3,712 |
| 6 Bedrooms | $4,157 |
| 7 Bedrooms | $4,490 |
| 8 Bedrooms | $4,715 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,790 | $286,389 | 0.97% | C |
| 4BR | $3,200 | $326,300 | 0.98% | C |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 60112 might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Here are some of those objections addressed with the available data.
Objection 1: Will Fair Market Rent (FMR) of $1820 for ZIP 60112 cover the mortgage on a $287,337 home?
The FMR set at $1820 for ZIP 60112 in fiscal year 2024 is designed to reflect the average rental cost for a modest home in the area. However, the question of whether this amount can cover the mortgage on a $287,337 home depends largely on the interest rate and loan terms. Assuming a 30-year fixed-rate mortgage at an average interest rate, the monthly mortgage payment would likely exceed the FMR. This means that the FMR alone might not be sufficient to cover all mortgage expenses without additional income sources or financial strategies.
Objection 2: Is there enough renter demand at 21.4%?
The percentage of renter-occupied housing units in ZIP 60112 stands at 21.4%. While this figure indicates a moderate level of demand, it does not provide a complete picture of the rental market dynamics. To truly assess the demand, we need to consider the vacancy rates, population growth, and other factors that influence the rental market. The 21.4% figure suggests that while there is a segment of the population seeking rental housing, the majority of homes are owner-occupied. This could imply a competitive rental market where the quality of the property and its location play crucial roles in attracting tenants.
Objection 3: Will vouchers keep pace with market rents of $1,552?
The market rent for ZIP 60112 is reported at $1,552. Given that the FMR is lower at $1820, the difference between these two figures needs to be considered. The voucher system aims to subsidize a portion of the market rent, but whether it will keep pace with the actual market rent of $1,552 is uncertain based on the provided data. Historically, voucher amounts have sometimes lagged behind rising market rents, which could lead to a situation where landlords might receive less than the full market rent. It's important to monitor local HUD guidelines and any adjustments made to voucher amounts to ensure they align with market conditions.
In conclusion, while ZIP 60112 offers opportunities for landlords and small-portfolio investors through the Section 8 program, careful consideration of the financials and market conditions is necessary to make informed decisions. The data provides a starting point, but deeper analysis into specific property costs, local economic trends, and tenant preferences will be essential for success.
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.