Section 8 Fair Market Rent (FMR) for ZIP 60188 - 2027

Investment Score for ZIP 60188

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,690
1 Bedroom	$1,800
2 Bedrooms	$2,030
3 Bedrooms	$2,610
4 Bedrooms	$2,980
5 Bedrooms	$3,457
6 Bedrooms	$3,872
7 Bedrooms	$4,182
8 Bedrooms	$4,391

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,800	$176,282	1.02%	B
2BR	$2,030	$285,660	0.71%	D
3BR	$2,610	$380,683	0.69%	D
4BR	$2,980	$500,170	0.6%	F
5BR	$3,457	$605,970	0.57%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60188 (Carol Stream, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Carol Stream, IL (ZIP code 60188) in 2026 indicate that the rent for a two-bedroom unit is set at $1810. This represents approximately 21.0% of the median household income in the area, which stands at $103,628. For voucher holders, this means they would be required to pay 30% of their adjusted income towards rent, while the government covers the remaining portion up to the FMR limit. Given the occupancy rate of 96.0%, it suggests that there is a high demand for rental properties, which could put upward pressure on actual rents. However, the FMR is designed to reflect the average market rent for modest housing, so it is likely that many units in Carol Stream are priced above these levels. The actual rents in the market are significantly higher than the FMR, particularly for a two-bedroom unit where the Zillow median price is $276,727. This translates to a price-to-FMR ratio of 12.7x, indicating that the market rents are much higher than what the FMR suggests. #### Affordability & Renter Profile The population of Carol Stream is 42,307, with 31.1% being renters. This implies that there are around 13,162 renters in the area. Given the median household income of $103,628, the majority of residents are middle-class or higher. However, the 31.1% who are renters might include individuals and families with lower incomes who rely on assistance like Section 8 vouchers to afford housing. The FMR for a two-bedroom unit at $1810 is only 21.0% of the median income, suggesting that the market is relatively tight for those relying solely on the voucher program. With the actual market rents being so much higher, it becomes challenging for voucher holders to find suitable housing. The high occupancy rate further supports the idea that the market is competitive, and landlords may have less incentive to accept vouchers due to the availability of higher-paying tenants. #### Investor Angle From an investor perspective, the key question is whether the FMR can support a positive cash flow. To determine this, we need to consider the typical expenses associated with owning and managing rental properties, including mortgage payments, property taxes, insurance, maintenance, and other operational costs. Assuming a conservative estimate of 75% of the FMR being used for mortgage payments, property taxes, and other fixed costs, the remaining 25% would need to cover variable costs such as maintenance and management fees. In Carol Stream, this would mean: - A two-bedroom unit with an FMR of $1810 would leave around $452.50 per month for variable costs. - If the total monthly expenses exceed this amount, then the property would not be cash-flow positive at FMR. Given the high price-to-FMR ratio, it is likely that many properties are priced well above the FMR, making it difficult for investors to find properties that offer a positive cash flow when rented at FMR rates. This suggests that the investment grade for Carol Stream is moderate to low, especially if the goal is to focus on Section 8 voucher holders. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors should look for properties that are priced closer to the FMR levels. For example, a two-bedroom unit priced at $1810 or slightly below would be more attractive to voucher holders and could potentially generate a positive cash flow. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units (like one-bedroom apartments) might be more affordable for voucher holders. The FMR for a one-bedroom unit is $1610, which is still a significant portion of the median income but may be more manageable for some renters. 3. **Explore Government Programs**: Investors might want to explore additional government programs that provide incentives for accepting Section 8 vouchers. These programs could help offset some of the financial constraints and make the investment more viable. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 60188 is to **Skip**. The high price-to-FMR ratio and the tight rental market suggest that finding properties that can generate a positive cash flow at FMR levels will be challenging. Additionally, the competition for rental units may lead to fewer opportunities for voucher holders, making it less likely for investors to fill their properties with eligible tenants. However, if investors are willing to accept a lower cash flow and focus on providing affordable housing, they might consider investing in smaller units or exploring government programs that offer additional support. But overall, the market conditions in Carol Stream do not favor a purely Section 8-focused investment strategy.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.