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 | $1,570 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,420 |
| 4 Bedrooms | $2,760 |
| 5 Bedrooms | $3,202 |
| 6 Bedrooms | $3,586 |
| 7 Bedrooms | $3,873 |
| 8 Bedrooms | $4,067 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,880 | $258,138 | 0.73% | D |
| 3BR | $2,420 | $304,747 | 0.79% | D |
| 4BR | $2,760 | $354,808 | 0.78% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 60162, which encompasses Hillside, Illinois, stands at $72,320. This figure is crucial when considering the local rental market, where the average monthly rent is $1,320 according to Census ACS data. For context, a household earning the median income would dedicate approximately 22.9% of their annual income to cover this market rate rent.
Comparatively, the Fair Market Rent (FMR) set by HUD for zip code 60162 in fiscal year 2024 is $1,760. This means that the government's standard for voucher payments exceeds the market rate by $440 per month. The implication is that families receiving housing vouchers could potentially afford higher rents than those paying out-of-pocket, aligning more closely with the FMR benchmark.
Hillside has a population of 8,084, with 34.7% being renters. Given these demographics, the affordability gap between the median income and both the market rate and voucher payment standards is significant. Landlords in this area must consider the financial realities faced by many tenants, who may struggle to meet the $1,320 market rate without assistance.
The takeaway for landlords is clear: accepting housing vouchers can provide a steady stream of income, albeit at a higher rate than the current market. However, it also means navigating the regulations and requirements associated with voucher programs. On the other hand, relying solely on cash-paying tenants might limit the pool of potential residents, given the economic constraints highlighted by the data. Balancing these factors will be key to successful property management in Hillside.
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.