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 | $1,440 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,530 | $158,879 | 0.96% | C |
| 2BR | $1,730 | $274,807 | 0.63% | D |
| 3BR | $2,220 | $348,413 | 0.64% | D |
| 4BR | $2,540 | $399,265 | 0.64% | D |
U.S. Census Bureau data (2024)
The analysis of River Grove, IL (ZIP 60171), within the Chicago-Joliet-Naperville, IL HUD Metro FMR Area, reveals key insights for landlords and small-portfolio investors.
The rent math does not favor landlords. The Fair Market Rent (FMR) set at $1460 for fiscal year 2024 is higher than the actual market rent of $1,214 reported by the Census ACS. This means that landlords may struggle to charge the FMR rate without reducing occupancy, as tenants will likely seek more affordable options.
Acquisition remains affordable. With a median home value of $301,762, purchasing properties in River Grove is relatively inexpensive compared to other areas in the Chicago metro region. However, the lack of data on days on market (DOM) and the low percentage of homes needing price cuts (0.2%) suggest that the housing market is stable but not particularly dynamic. This could indicate that finding distressed properties for lower prices might be challenging.
Tenant demand is robust. River Grove has a population of 10,451, with 44.4% of residents being renters. This significant rental market share indicates a strong tenant base, which can be beneficial for landlords looking to maintain consistent occupancy rates.
Verdict: While River Grove offers an affordable entry point for acquiring properties, the disparity between the FMR and the actual market rent suggests that landlords may need to adjust their expectations regarding rental income. Despite this, the high renter share ensures a steady demand for rental units, making it a viable option for those willing to align their rental pricing with market realities. Landlords should focus on offering competitive rents and maintaining quality properties to attract and retain tenants in this area.
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.