Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, 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 | $2,050 |
| 1 Bedroom | $2,180 |
| 2 Bedrooms | $2,460 |
| 3 Bedrooms | $3,160 |
| 4 Bedrooms | $3,610 |
| 5 Bedrooms | $4,188 |
| 6 Bedrooms | $4,691 |
| 7 Bedrooms | $5,066 |
| 8 Bedrooms | $5,319 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,460 | $371,380 | 0.66% | D |
| 3BR | $3,160 | $442,481 | 0.71% | D |
| 4BR | $3,610 | $619,490 | 0.58% | F |
| 5BR | $4,188 | $783,028 | 0.53% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 60143 (Itasca, IL) reveals two distinct scenarios based on the Federal Market Rent (FMR) and the Zillow Observed Rent Index (ZORI).
Using the annualized 2BR FMR of $1920 for FY 2024, the implied gross yield for a property in Itasca, IL, is calculated as follows:
$1920 / $442,570 = 0.0043 or 0.43%
In contrast, using the market rent figure of $2,385 from the ZORI, the implied gross yield becomes:
$2,385 / $442,570 = 0.0054 or 0.54%
The difference between these two gross yields highlights the financial implications of participating in the Section 8 program versus renting at market rates. The 0.43% gross yield derived from the FMR suggests that properties rented through Section 8 would generate significantly lower returns compared to the 0.54% gross yield at market rates.
Given the 28.2% renter density in Itasca, it's important to note that the majority of homeowners in this area likely prefer owning their homes outright rather than renting them out. This preference can affect the demand for rental properties and thus the feasibility of achieving market rents. However, the N/A-day DOM (days on market) indicates incomplete data, which could mean either very quick sales or an anomaly in reporting. Without this information, it's challenging to fully assess the local rental market dynamics.
Despite these uncertainties, the gross-yield comparison clearly favors market rents over Section 8 rents. Landlords and small-portfolio investors should consider this when deciding whether to participate in the Section 8 program or aim for higher returns by renting at market rates.
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.