Section 8 Fair Market Rent (FMR) for ZIP 60115 - 2027

Investment Score for ZIP 60115

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,010
1 Bedroom	$1,110
2 Bedrooms	$1,420
3 Bedrooms	$1,920
4 Bedrooms	$2,210
5 Bedrooms	$2,564
6 Bedrooms	$2,872
7 Bedrooms	$3,102
8 Bedrooms	$3,257

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,420	$212,197	0.67%	D
3BR	$1,920	$258,029	0.74%	D
4BR	$2,210	$324,379	0.68%	D
5BR	$2,564	$356,183	0.72%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60115 (DeKalb, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 60115 is set by HUD for 2026 as follows: - 0BR: $910 - 1BR: $1010 - 2BR: $1320 (which represents 33.7% of the median household income) - 3BR: $1750 - 4BR: $2120 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, the actual rental market in DeKalb, IL, might present different dynamics. For instance, the Zillow median price for a 2BR property is $205,194. This suggests that the average home value is significantly higher than the FMR, which could indicate that landlords might be hesitant to accept vouchers due to the low rent ceiling. The Price-to-FMR ratio of 13.0x for a 2BR unit implies that the typical market rent is much higher than the FMR. This means that voucher holders are constrained in their ability to find suitable housing, as landlords may prefer renting to tenants who can afford the market rate. Consequently, voucher holders must often settle for properties that are below market standards or in less desirable areas. #### Affordability & Renter Profile In ZIP code 60115, 57.0% of the population are renters, indicating a strong demand for rental housing. The occupancy rate stands at 93.2%, suggesting that the rental market is relatively tight. Given the median household income of $47,043, it’s clear that many residents struggle with affordability. The FMR for a 2BR unit at $1320 is only 33.7% of the median income, which is quite low. This indicates that even without assistance, a significant portion of the population would find it challenging to afford a 2BR unit at market rates. Therefore, the high percentage of renters likely includes a substantial number of individuals who rely on government assistance programs like Section 8 to meet their housing needs. #### Investor Angle From an investor perspective, the key question is whether properties can generate positive cash flow at the FMR levels. Given the Zillow median price of $205,194 for a 2BR unit, we can estimate the potential rental income based on the FMR. To determine if the ZIP is cash-flow positive at FMR, let’s consider a conservative estimate of expenses. Assuming a mortgage payment of approximately $850 per month (based on a 30-year fixed-rate mortgage at 5% interest), property taxes of $200, insurance of $100, and maintenance costs of $150, the total monthly expenses would be around $1300. This figure closely matches the FMR for a 2BR unit, leaving little room for profit unless the investor can reduce some of these costs. Given the tight market conditions and the high percentage of renters, there is a strong demand for rental units. However, the low FMR relative to market rents poses a challenge for investors seeking to maximize returns. The investment grade for this ZIP code would be considered moderate, as while there is demand, the financial constraints imposed by FMR limits profitability. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should focus on smaller units such as 0BR and 1BR apartments, where the FMR is lower ($910 and $1010 respectively). These units are more likely to generate positive cash flow, given the high demand and limited supply of affordable housing. 2. **Consider Renovation Projects**: Investors might find opportunities in older properties that can be renovated and brought up to standard. By improving the quality of the property, they can potentially command slightly higher rents while still staying within the FMR guidelines. This approach can also help attract voucher holders who are looking for better living conditions. 3. **Explore Non-Voucher Rental Markets**: Given the tight market and high demand, investors should also explore opportunities to rent to non-voucher tenants. This can provide higher rental income, although it may require marketing efforts to position the properties as attractive options for those who do not need assistance. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 60115 is **Hold**. While there is a strong demand for rental housing, the low FMR relative to market rents makes it challenging to achieve high returns. Investors should carefully evaluate their cost structures and consider focusing on smaller units or renovation projects to optimize cash flow. Additionally, diversifying into non-voucher rental markets could be a viable strategy to enhance profitability.

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.