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 | $1,370 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $276,531 | 0.59% | F |
| 3BR | $2,110 | $334,467 | 0.63% | D |
| 4BR | $2,410 | $394,673 | 0.61% | D |
| 5BR | $2,796 | $396,874 | 0.7% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 60160, Melrose Park, IL, are structured around the SAFMR (Small Area Fair Market Rent). For a two-bedroom apartment in this specific ZIP code, the SAFMR for FY 2024 is set at $1500. This figure represents the maximum amount that the Housing Choice Voucher program will pay toward the rent.
The local market rent for a two-bedroom unit, as indicated by the ZORI (Zillow Observed Rent Index), is $1,523. This slight difference between the SAFMR and the local market rent can influence a landlord's decision to accept vouchers. However, the total reimbursement received from the program is not solely based on the SAFMR but also includes the tenant's portion of the rent and utility allowances.
The tenant is required to contribute 30% of their adjusted income towards the rent. If we assume an average adjusted income of $1,800 per month, the tenant would contribute approximately $540 towards the rent. This contribution is then added to the SAFMR to determine the total reimbursement amount.
In addition to the tenant's portion, there are utility allowances that vary by location and size of the unit. For a two-bedroom apartment in ZIP 60160, the utility allowance is typically around $350. This allowance covers the costs of electricity, gas, water, and sewerage, which are included in the overall reimbursement calculation.
To summarize, the total reimbursement a landlord would receive for a two-bedroom unit under a Section 8 voucher would be the sum of the SAFMR ($1500) and the tenant's contribution ($540), plus the utility allowance ($350). This totals to $2,390. However, since the local market rent is slightly higher at $1,523, the actual reimbursement gap or surplus is minimal. In this case, the landlord would receive a reimbursement of $2,390, while the market rent is $1,523, resulting in a surplus of $867.
This surplus means that landlords in ZIP 60160 can expect to receive more than the market rent for a two-bedroom apartment when participating in the Section 8 program. It's important to note that the exact reimbursement amount can vary depending on the specific tenant's income and other factors, but the general principle remains the same.
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.