Section 8 Fair Market Rent (FMR) for ZIP 60148 - 2027

Investment Score for ZIP 60148

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	$2,140
1 Bedroom	$2,270
2 Bedrooms	$2,560
3 Bedrooms	$3,290
4 Bedrooms	$3,760
5 Bedrooms	$4,362
6 Bedrooms	$4,885
7 Bedrooms	$5,276
8 Bedrooms	$5,540

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,270	$170,505	1.33%	A
2BR	$2,560	$306,337	0.84%	C
3BR	$3,290	$412,870	0.8%	D
4BR	$3,760	$507,519	0.74%	D
5BR	$4,362	$623,691	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60148 (Lombard, IL) #### Section 8 Voucher Dynamics In ZIP code 60148, the Federal Market Rent (FMR) for a two-bedroom unit is set at $2,190 per month for 2026. This amount represents 26.1% of the median household income of $100,616, indicating that it is within a reasonable affordability range for low-income households. However, the actual rent charged by landlords in Lombard can be significantly higher. The Zillow median price for a two-bedroom rental property is $298,078, which translates to an estimated monthly rent of approximately $2,484 based on typical mortgage payments. This suggests that the actual rents are higher than the FMR, creating a potential challenge for Section 8 voucher holders who may struggle to find units that accept their vouchers due to the rent limits imposed by the program. The constraints for voucher holders include the requirement that landlords cannot charge more than the FMR for the unit type. For instance, a landlord with a three-bedroom unit would need to keep the rent at or below $2,820 to be eligible for Section 8 participation. Given the high actual rents in Lombard, this could limit the number of available units for voucher holders, especially in larger unit sizes. #### Affordability & Renter Profile Lombard has a population of 52,596, with 28.5% of residents being renters. This indicates a substantial rental market, but the occupancy rate of 93.6% suggests that the market is relatively tight. With a median household income of $100,616, the majority of residents have a strong financial standing, making it challenging for lower-income individuals to afford housing without assistance. The FMR for a two-bedroom unit is $2,190, which is only 26.1% of the median household income. This implies that the average resident can comfortably afford housing costs, but for those relying on Section 8 vouchers, the situation is more complex. They must find units that are willing to accept vouchers and are priced within the FMR guidelines. Given the high actual rents, this could lead to competition among voucher holders for the limited number of affordable units. #### Investor Angle From an investor's perspective, the ZIP code 60148 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2,190, while the actual estimated rent is around $2,484. This means that if an investor purchases a property at the Zillow median price of $298,078 and rents it out at the FMR, they would be operating at a discount compared to market rates. To assess whether this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. Assuming a 30-year fixed-rate mortgage at 5%, the monthly mortgage payment for a $298,078 property would be approximately $1,560. Adding in other typical expenses such as property taxes (around $4,000 annually), insurance ($1,200 annually), maintenance ($100 monthly), and utilities ($100 monthly), the total monthly cost would be roughly $2,160. At an FMR rent of $2,190, the net cash flow would be minimal, around $30 per month, which is not financially viable for most investors. The investment grade for properties in this ZIP code is likely to be moderate to low for Section 8-focused investors due to the tight market and the significant gap between FMR and actual rents. Investors should carefully evaluate the long-term prospects and potential for rent increases before committing to this market. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high actual rents, investors might want to focus on smaller units like one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1,940, which is still a considerable amount but might offer better cash flow when compared to the actual market rents for these unit types. Additionally, there is a higher likelihood of finding units that accept Section 8 vouchers in smaller sizes. 2. **Consider Renovation Projects**: Investors could look into purchasing older properties that are currently priced below the Zillow median and renovating them to increase their value. By doing so, they can potentially achieve a higher rent-to-cost ratio, making the investment more attractive. For example, a property purchased at $250,000 could be renovated to command a slightly higher rent, improving the overall cash flow. 3. **Engage with Local Landlords**: Building relationships with local landlords who are already participating in the Section 8 program can provide valuable insights into the market dynamics and help identify units that are more likely to accept vouchers. This could also open up opportunities for acquiring properties that are already set up to work within the FMR guidelines. #### Bottom Line For Section 8-focused investors, the ZIP code 60148 (Lombard, IL) presents a challenging environment due to the high actual rents and the tight market conditions. The recommendation for this market is to **Skip** investing in larger units and instead **Hold** or **Buy** smaller units where the FMR is closer to the actual market rents. Investors should also consider properties that can be renovated to improve their value and attractiveness to voucher holders. Overall, the investment grade is moderate to low, and careful consideration of the market dynamics is essential before making any investment decisions.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.