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 | $1,650 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,550 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,980 | $293,412 | 0.67% | D |
| 3BR | $2,550 | $363,650 | 0.7% | D |
| 4BR | $2,910 | $537,761 | 0.54% | F |
| 5BR | $3,376 | $615,850 | 0.55% | F |
U.S. Census Bureau data (2024)
ZIP 60185, located in West Chicago, IL, offers a strategic fit for landlords and small-portfolio investors looking to diversify their holdings within the Chicago-Joliet-Naperville, IL HUD Metro FMR Area. This area stands out as an appreciation play due to its low price-cut share and median days on market (DOM).
The Fair Market Rent (FMR) for ZIP 60185 in fiscal year 2024 is set at $1,660, which is notably higher than the current market rent of $1,489. This suggests that rental prices are likely to rise over time to meet the FMR benchmark, providing potential for increased cash flow in the future. However, the primary reason to consider this ZIP code as an appreciation play is its strong market fundamentals.
The area has a price-cut share of only 0.2%, indicating that homes here rarely need to be discounted to sell. This reflects a robust local real estate market where property values are stable and potentially increasing. Additionally, the median income of $107,194 supports the ability of residents to afford higher rents and property values, further bolstering the case for appreciation.
While the median home value of $382,815 is relatively high, it is balanced by a significant 22.7% renter share, ensuring a steady demand for rental properties. The combination of these factors makes ZIP 60185 a prime candidate for appreciation within a Section 8 portfolio strategy.
To summarize, ZIP 60185 is best positioned as an appreciation play due to its low price-cut share, stable DOM, and strong median income, all of which contribute to a healthy real estate market poised for growth. The slight disparity between the FMR and current market rent also points towards potential future increases in rental rates, enhancing long-term investment returns.
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.