Section 8 Fair Market Rent (FMR) for ZIP 60126 - 2027

Investment Score for ZIP 60126

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	$2,230
1 Bedroom	$2,360
2 Bedrooms	$2,670
3 Bedrooms	$3,430
4 Bedrooms	$3,920
5 Bedrooms	$4,547
6 Bedrooms	$5,093
7 Bedrooms	$5,500
8 Bedrooms	$5,775

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
1BR	$2,360	$174,700	1.35%	A
2BR	$2,670	$384,004	0.7%	D
3BR	$3,430	$543,612	0.63%	D
4BR	$3,920	$901,299	0.43%	F
5BR	$4,547	$1,362,784	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60126 (Elmhurst, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Elmhurst, IL, as per the 2026 guidelines, is set at $2360 for a two-bedroom unit. This figure represents 19.2% of the median household income in the area, which stands at $147,566. However, the actual rental market in Elmhurst is significantly higher. The Zillow median price for a two-bedroom home is $371,355, indicating a price-to-FMR ratio of 13.1x. This means that the average rent for a two-bedroom unit is likely much higher than the FMR, creating a substantial gap between what voucher holders can afford and the actual rental costs. For instance, if we assume a typical rental cost of $2360 * 13.1 = $30,876, this would be far beyond the FMR limit. Therefore, voucher holders face significant constraints in finding affordable housing within the parameters of their vouchers. #### Affordability & Renter Profile Elmhurst has a relatively low renter population percentage of 19.3%, suggesting that it is primarily a homeowner-dominated community. With a high occupancy rate of 94.7%, the rental market appears to be quite tight, with limited availability and potentially higher competition among renters. Given the median household income of $147,566, most residents are likely well above the poverty line and can afford higher rents. However, the 19.3% of renters who do reside in the area might struggle to find affordable housing, especially when considering the high price-to-FMR ratio. This indicates that the rental market is not particularly affordable for lower-income individuals, making it challenging for those relying on Section 8 vouchers to secure housing. #### Investor Angle From an investor perspective, the ZIP code 60126 presents a mixed picture. While the rental market is robust due to high demand and limited supply, the actual rents are substantially higher than the FMR. This means that properties rented at FMR levels will likely generate negative cash flow, given the high purchase price of homes in the area. For example, a two-bedroom property priced at $371,355 would need to be rented at around $30,876 annually to break even, which is far above the FMR of $2360. Thus, the investment grade for Section 8-focused properties in this ZIP code is relatively low, as the financial returns are unlikely to cover the costs associated with owning and maintaining such properties. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on properties that are closer to the FMR levels. For instance, a three-bedroom unit with an FMR of $3040 could be more feasible, though still challenging due to the high price-to-FMR ratio. This approach might help mitigate some of the financial risks associated with renting at FMR levels. 2. **Consider Rental Assistance Programs**: Since the rental market is tight and the FMR is significantly lower than actual rents, investors might want to explore other rental assistance programs that offer higher subsidies. These programs could provide better financial returns while still serving the needs of lower-income tenants. 3. **Evaluate Long-Term Appreciation Potential**: Despite the challenges of renting at FMR levels, the high median household income and strong occupancy rates suggest that the overall real estate market in Elmhurst is stable and appreciating. Investors might consider holding onto properties for long-term appreciation rather than focusing solely on short-term rental income. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors is to **Skip** purchasing properties in ZIP code 60126. The financial constraints and limited opportunities for positive cash flow make it a less attractive option compared to areas where the FMR is closer to actual rental prices. Investors looking to serve the needs of lower-income tenants through Section 8 vouchers would likely find more success in other ZIP codes with a better alignment between FMR and actual rents.

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.