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 | $2,050 |
| 1 Bedroom | $2,180 |
| 2 Bedrooms | $2,460 |
| 3 Bedrooms | $3,160 |
| 4 Bedrooms | $3,610 |
| 5 Bedrooms | $4,188 |
| 6 Bedrooms | $4,691 |
| 7 Bedrooms | $5,066 |
| 8 Bedrooms | $5,319 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,180 | $207,156 | 1.05% | B |
| 2BR | $2,460 | $261,396 | 0.94% | C |
| 3BR | $3,160 | $418,686 | 0.75% | D |
| 4BR | $3,610 | $726,633 | 0.5% | F |
| 5BR | $4,188 | $907,946 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 60189 (Wheaton, IL) reveals some interesting insights. To start, let's annualize the 2-bedroom Fair Market Rent (FMR) at $2120 per month for FY 2024. This translates to an annual income of $25,440. Given the median home value of $512,581, the implied gross yield from the FMR is approximately 4.96%. The calculation is straightforward: divide the annual income by the property value.
Next, we consider the market rent, which is represented by the Zillow Observed Rental Index (ZORI) at $2,839 per month. Annualizing this figure gives us $34,068. Using the same median home value, the implied gross yield from the market rent is about 6.65%. This is a significant increase over the FMR yield, reflecting the higher rents commanded in the private market.
To determine which scenario is more realistic, we must consider the local rental dynamics. With a renter density of 22.2%, it's evident that Wheaton has a predominantly owner-occupied housing market. However, the 6-day Days on Market (DOM) suggests that rental properties are quickly absorbed when they become available, indicating a strong demand for rentals.
Given these conditions, the market rent scenario is more realistic. Despite the lower overall renter population, the swift turnover of rental listings implies that landlords can likely command closer to the market rent, even if participating in Section 8. The higher gross yield of 6.65% provides a better indication of potential returns for investors in this ZIP code.
It's important to note that while the FMR yield of 4.96% is lower, it still represents a solid investment opportunity, especially considering the stability and government backing associated with Section 8. However, for those looking to maximize returns, the market rent scenario offers a clearer picture of what can be achieved in the current rental climate of Wheaton, IL.
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.