Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,440 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,530 |
| 5 Bedrooms | $2,935 |
| 6 Bedrooms | $3,287 |
| 7 Bedrooms | $3,550 |
| 8 Bedrooms | $3,728 |
U.S. Census Bureau data (2024)
To decide whether you should buy in ZIP 60163 (Berkeley, IL) for Section 8, follow this decision tree:
1) Does FMR $1390 (zip FY 2024) clear debt service on a $292,978 property?
No. The Fair Market Rent (FMR) of $1390 is insufficient to cover typical debt service costs on a property valued at $292,978. Debt service usually includes mortgage payments, property taxes, insurance, and maintenance, which collectively would exceed this amount.
2) Is market rent $1,434 (Census ACS) above, at, or below FMR?
It is slightly above. The market rent of $1,434 is marginally higher than the FMR of $1390, indicating that properties in Berkeley, IL can command rents slightly over the Section 8 rate. However, this difference is minimal and may not provide substantial profit margins beyond covering operational costs.
3) Are 18.0% renters + N/A-day days on market (DOM) enough demand?
Yes. With 18.0% of the population being renters, there is a sufficient rental market presence in Berkeley, IL. However, the lack of data on days on market (DOM) makes it challenging to assess how quickly properties might be rented out. Despite this, the percentage of renters suggests a steady demand for rental units.
Decision:
If your primary goal is to secure stable tenants via Section 8, the answer is no. The FMR does not adequately cover the debt service on a property valued at $292,978, making it financially unviable.
If you are willing to supplement Section 8 income with additional sources or manage the property with lower operational costs, the answer could be it depends. The market rent being slightly above the FMR offers some flexibility, but careful financial planning is necessary.
If you are looking for a property with strong rental demand, the answer is yes. The 18.0% rental rate indicates a healthy tenant pool, though the absence of DOM data means you cannot fully gauge how quickly you can expect to fill vacancies.
In summary, purchasing in ZIP 60163 for Section 8 is not advisable if your sole focus is on the program's rental rates. However, if you can leverage market rents and manage costs effectively, it may still be a viable option. Ensure you account for the lack of DOM data when assessing the speed of finding tenants.
Data Sources: FMR data from HUD (2027). 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.