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 | $1,900 |
| 1 Bedroom | $2,020 |
| 2 Bedrooms | $2,280 |
| 3 Bedrooms | $2,930 |
| 4 Bedrooms | $3,350 |
| 5 Bedrooms | $3,886 |
| 6 Bedrooms | $4,352 |
| 7 Bedrooms | $4,700 |
| 8 Bedrooms | $4,935 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,280 | $264,365 | 0.86% | C |
| 3BR | $2,930 | $363,096 | 0.81% | C |
| 4BR | $3,350 | $527,290 | 0.64% | D |
| 5BR | $3,886 | $622,311 | 0.62% | D |
U.S. Census Bureau data (2024)
ZIP 60177, located in South Elgin, IL, within the Chicago-Joliet-Naperville, IL HUD Metro FMR Area, serves best as an appreciation play in a Section 8 portfolio strategy. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $2080, while the market rent stands at $2,462, indicating a spread of $382 per month. This difference suggests that properties in this ZIP can command higher rents beyond the FMR cap, which benefits landlords who can negotiate leases outside of Section 8.
The median home value in ZIP 60177 is $366,415, and the price-cut share is only 0.1%, meaning homes rarely go on sale at a discount. Additionally, the Days on Market (DOM) is just 11 days, reflecting a robust real estate market where homes sell quickly. These factors point towards a strong potential for property appreciation over time, making it an ideal location for long-term investment focused on capital gains rather than immediate cash flow.
While the renter share is 20.8%, and the median income is $126,144, these metrics do not significantly impact the appreciation play strategy. High median incomes suggest a stable economic environment, which supports both rental demand and property values. However, the low price-cut share and short DOM are stronger indicators of a market primed for growth in property values, aligning well with an appreciation play.
To summarize, ZIP 60177 is best suited as an appreciation play within a Section 8 portfolio strategy due to its high market rent compared to the FMR, quick sales, and minimal price cuts. This focus on capital appreciation complements other strategies aimed at maximizing cash flow or diversifying risk.
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.