Location: DeKalb County, 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 | $1,120 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,570 | $228,795 | 0.69% | D |
| 3BR | $2,130 | $318,086 | 0.67% | D |
| 4BR | $2,440 | $413,006 | 0.59% | F |
| 5BR | $2,830 | $480,795 | 0.59% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 60178, which includes Sycamore, IL, and parts of DeKalb County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1350. This figure is specific to this ZIP code and reflects the maximum amount that the Housing Choice Voucher Program will pay for a two-bedroom unit in this area.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), is currently $1608. This indicates the average rent charged for similar units in the same market. Landlords should understand that while the local market rent is higher, the Section 8 program only reimburses up to the SAFMR.
A tenant using a Section 8 voucher is required to contribute a portion of their income towards the rent. Specifically, they must pay 30% of their adjusted monthly income. If a tenant's income is $1,000 per month, they would contribute $300 towards the rent. In addition to the base rent, there are utility allowances which can vary but typically add an extra $100 to $200 to the reimbursement amount.
To illustrate, if a tenant's income contribution is $300 and the utility allowance is $150, the total reimbursement a landlord would receive for a two-bedroom apartment is $1800 ($1350 SAFMR + $300 tenant contribution + $150 utility allowance). However, the actual reimbursement cannot exceed the SAFMR of $1350. Therefore, in this scenario, the landlord would receive the full SAFMR of $1350, plus the $300 from the tenant, totaling $1650.
This leaves a gap between the local market rent and the reimbursement amount. In the case of ZIP 60178, the typical gap for a two-bedroom apartment is $58 ($1608 - $1650). This means landlords who participate in the Section 8 program in this ZIP code might have to accept a slightly lower rent compared to the local market average, or find ways to reduce operating costs to accommodate this difference.
Landlords must also be aware that the SAFMR is subject to annual adjustments based on HUD's evaluation of rental market conditions. Therefore, it is important to monitor these changes to ensure that the economic impact aligns with business goals.
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.