Location: DeKalb County, 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 | $1,140 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,180 | $269,118 | 0.81% | C |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 60150 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1340, while the Census American Community Survey (ACS) indicates that the average market rent is $1,104. This creates a positive gap of $236, or approximately 21.4%, in favor of landlords who participate in the Section 8 program.
The higher FMR compared to the market rent makes ZIP 60150 a prime location for landlords looking to maximize their rental yields. Voucher tenants bring a guaranteed income stream that exceeds the typical market rate, thereby offering a financial advantage over non-voucher tenants. Given that only 23.7% of residents are renters, the competition for rental properties is relatively low, which can help landlords maintain higher occupancy rates with fewer vacancies.
In ZIP 60150, where the median home value stands at $271,855 and the median income is $86,719, the disparity between FMR and market rent can be attributed to several factors. Firstly, the FMR is calculated based on broader regional data and aims to ensure affordability across different neighborhoods, whereas the market rent reflects local conditions and may not fully capture the higher-end nature of the housing stock in 60150. Secondly, the lower percentage of renters suggests that there is a smaller pool of potential voucher recipients relative to the total population, which can lead to a more favorable landlord-voucher tenant ratio.
Despite the benefits, landlords must also consider the administrative costs associated with managing voucher tenants. These include background checks, credit screenings, and compliance with HUD regulations. However, these costs are generally offset by the stability and predictability of rental income from voucher tenants, especially when the FMR exceeds the market rent. This scenario presents an opportunity for landlords to generate above-average returns without significantly increasing their operational expenses.
In conclusion, the positive gap between FMR and market rent in ZIP 60150 positions voucher tenants as a valuable asset for landlords seeking to enhance their investment yields. The relatively low competition for rental units and the higher income levels in the area further support this thesis, making it a compelling strategy for those interested in maximizing their rental income in this zip code.
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.