Location: Rockford, 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 | $880 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,680 | $321,370 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 60145 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant risk, especially when comparing the market rent of $975 to the Federal Market Rent (FMR) of $1280 for FY 2024. This discrepancy suggests that tenants might be drawn to properties offering higher subsidies, leading to frequent moves as they seek better financial support.
Vacancy exposure is another concern due to the lack of data on Days on Market (DOM). This absence indicates an unreliable measure of how quickly properties are leased, which can be critical for cash flow management. Landlords must prepare for potential delays in filling vacancies, especially if they are competing with non-subsidized rentals.
Deferred maintenance poses a risk given the typical home value of $329,367 and a median income of $108,477. The gap between these figures implies that homeowners might struggle to keep up with necessary repairs and maintenance, which can affect property quality and tenant satisfaction. For landlords, this means increased costs to maintain rental standards and tenant eligibility.
Despite these risks, the area has a high renter share at 11.9%. High renter density typically correlates with greater demand for housing vouchers, which can stabilize occupancy rates. This demand ensures a steady stream of potential tenants who qualify for Section 8 assistance, reducing the likelihood of prolonged vacancies.
In summary, the risks associated with tenant turnover, vacancy exposure, and deferred maintenance are present but manageable. The high renter share offers a counterbalance, ensuring a robust pool of Section 8 applicants. Therefore, the overall risk for a first-time Section 8 landlord in ZIP 60145 is moderate.
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.