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 | $1,940 |
| 1 Bedroom | $2,060 |
| 2 Bedrooms | $2,330 |
| 3 Bedrooms | $2,990 |
| 4 Bedrooms | $3,420 |
| 5 Bedrooms | $3,967 |
| 6 Bedrooms | $4,443 |
| 7 Bedrooms | $4,798 |
| 8 Bedrooms | $5,038 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,990 | $696,416 | 0.43% | F |
| 4BR | $3,420 | $822,946 | 0.42% | F |
| 5BR | $3,967 | $1,019,067 | 0.39% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP 60184 might raise several valid concerns regarding the feasibility of investing in properties under the Section 8 program. Here are three key objections and their analysis based on the available data.
Objection 1: Will Fair Market Rent (FMR) of $1950 for ZIP 60184 in fiscal year 2024 cover the mortgage on a $772,899 home?
The FMR of $1950 per month in ZIP 60184 for fiscal year 2024 does not cover the mortgage on a $772,899 home without additional considerations. A typical mortgage payment for a home of this value, assuming a 20% down payment and a 30-year fixed-rate mortgage at an average interest rate of around 4%, would be approximately $3,000 per month. This exceeds the FMR significantly, indicating that relying solely on Section 8 payments would result in a shortfall. However, it's important to note that property taxes and insurance can also be reimbursed, which could help bridge the gap. Additionally, some landlords may choose to invest in areas with lower property values to ensure the FMR covers the mortgage payment adequately.
Objection 2: Is there enough renter demand at 3.1%?
The 3.1% renter demand in ZIP 60184 suggests a relatively low proportion of renters compared to homeowners. This could indicate a smaller pool of potential Section 8 tenants. However, the percentage alone does not provide a complete picture. The actual number of renters and the size of the local Section 8 program are critical factors. Without specific data on the number of Section 8 participants in ZIP 60184, it's challenging to definitively assess the adequacy of demand. Nonetheless, a low renter demand percentage might require more aggressive marketing strategies to attract Section 8 tenants or consideration of other investment opportunities with higher rental demand.
Objection 3: Will vouchers keep pace with $3,501 market rents?
The market rent of $3,501 per month in ZIP 60184 is notably higher than the FMR of $1950. While the Housing Choice Voucher program aims to cover a significant portion of market rents, it does not guarantee full coverage. The gap between the FMR and market rents means that landlords may have to accept a lower reimbursement rate, potentially leading to financial strain. Moreover, the program's funding and ability to adjust to rising market rents are subject to federal budget constraints and policy changes. Therefore, while vouchers can provide substantial assistance, they may not fully align with the high market rents in ZIP 60184, necessitating careful financial planning and possibly seeking supplementary income sources.
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.