Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,900 |
| 1 Bedroom | $2,020 |
| 2 Bedrooms | $2,280 |
| 3 Bedrooms | $2,930 |
| 4 Bedrooms | $3,350 |
| 5 Bedrooms | $3,886 |
| 6 Bedrooms | $4,352 |
| 7 Bedrooms | $4,700 |
| 8 Bedrooms | $4,935 |
The analysis of the Section 8 program in ZIP code 60117 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1940, while the market rent remains unreported, suggesting it could be higher or lower depending on specific property conditions and neighborhood dynamics.
In the case where FMR exceeds market rent, the difference would make properties in ZIP 60117 attractive for voucher tenants, turning this area into a yield play for landlords. This means that landlords can expect to receive a higher percentage of their rental costs covered by the government through the Section 8 program, potentially leading to better financial returns than what they might get from open-market tenants paying lower rents.
Conversely, if the market rent surpasses the FMR, landlords who accept Section 8 tenants will face a shortfall. The exact amount of this shortfall cannot be quantified without knowing the market rent, but it would represent the difference between the FMR and the market rate, which could be substantial. This scenario presents a challenge for landlords looking to maximize their rental income, as they must decide whether the stability and security offered by Section 8 tenants outweigh the potential loss in revenue.
The rental landscape in ZIP 60117, located in an unknown part of Illinois, is characterized by a lack of specific data regarding the percentage of renters, median home values, and median incomes. However, the general principle holds that when FMRs are higher than market rents, it can incentivize participation in the Section 8 program. Conversely, when market rents exceed FMRs, landlords must carefully consider the financial implications before deciding to accept Section 8 tenants.
To illustrate the impact of these differences, consider a scenario where the market rent is hypothetically $2200. In this case, the gap between the FMR and market rent would be $260, representing a 13.4% shortfall for landlords accepting Section 8 vouchers. This figure underscores the importance of understanding local rental trends and the specific terms of the Section 8 program in ZIP 60117.
Landlords and small-portfolio investors must weigh the benefits of guaranteed rental payments against the potential financial loss due to the gap between FMR and market rent. While the exact numbers for ZIP 60117 remain unclear, the principles of this analysis provide a framework for making informed decisions about participating in the Section 8 program.
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.