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 | $2,180 |
| 1 Bedroom | $2,310 |
| 2 Bedrooms | $2,610 |
| 3 Bedrooms | $3,360 |
| 4 Bedrooms | $3,830 |
| 5 Bedrooms | $4,443 |
| 6 Bedrooms | $4,976 |
| 7 Bedrooms | $5,374 |
| 8 Bedrooms | $5,643 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,610 | $287,003 | 0.91% | C |
| 3BR | $3,360 | $385,103 | 0.87% | C |
| 4BR | $3,830 | $506,775 | 0.76% | D |
| 5BR | $4,443 | $573,234 | 0.78% | D |
U.S. Census Bureau data (2024)
The ZIP code 60194, located in Schaumburg, IL, presents an interesting scenario when viewed from the renter's perspective. The median household income in this area is $97,994, which provides a solid financial foundation for residents. However, the market rate rent, known as the Zillow Observed Rent Index (ZORI), stands at $2,304 per month. This figure is slightly above the Fair Market Rent (FMR) set by HUD for the fiscal year 2024, which is $2,210.
To determine if a household can afford the market rate, we consider the general rule of thumb that housing costs should not exceed 30% of a household's income. For a household earning the median income of $97,994, the affordable rent range would be approximately $2,449 per month. Therefore, the market rate of $2,304 is within the affordable range for most households, although it's close to the upper limit.
With 26.6% of the population being renters, there is a notable demand for rental properties. The total population of 19,756 means that about 5,250 people are actively seeking rental accommodations. The affordability gap, where the ZORI exceeds the FMR, indicates that some renters might find it challenging to pay the market rate without assistance.
This gap has significant implications for landlord competition. Landlords who accept Housing Choice Vouchers, which are typically capped at the FMR, will likely attract a segment of the rental market that cannot afford the higher market rates. On the other hand, those who focus on cash-paying tenants may benefit from the proximity of the market rate to the median household's affordability threshold.
The takeaway for landlords is clear: accepting vouchers can provide a steady stream of tenants but limits the potential for higher rents. Cash-paying tenants offer higher monthly income but may require more competitive pricing to attract them in a market where the ZORI is just above the FMR. Landlords must weigh these factors carefully and consider their long-term goals in terms of tenant stability versus immediate financial gain.
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.