Section 8 Fair Market Rent (FMR) for ZIP 60201 - 2027

Investment Score for ZIP 60201

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	$2,190
1 Bedroom	$2,330
2 Bedrooms	$2,630
3 Bedrooms	$3,380
4 Bedrooms	$3,860
5 Bedrooms	$4,478
6 Bedrooms	$5,015
7 Bedrooms	$5,416
8 Bedrooms	$5,687

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,330	$270,801	0.86%	C
2BR	$2,630	$390,096	0.67%	D
3BR	$3,380	$654,065	0.52%	F
4BR	$3,860	$1,046,251	0.37%	F
5BR	$4,478	$1,436,792	0.31%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60201 (Evanston, IL) #### Section 8 Voucher Dynamics In ZIP code 60201, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2370 per month. This figure represents 31.4% of the median household income of $90,545, indicating that it is within a reasonable range for affordability. However, the actual rental market in Evanston is significantly higher. The Zillow median price for a two-bedroom home is $378,280, which translates to a monthly rent of approximately $1330 if we assume a typical mortgage payment based on a 4.5% interest rate over 30 years. This is far below the FMR, suggesting that landlords who participate in the Section 8 program are likely to charge closer to the FMR rather than the typical market rent. The constraints for voucher holders include finding properties that accept Section 8 vouchers and are willing to rent at the FMR rates. Given the high median home value and the relatively low FMR compared to typical market rents, voucher holders might face challenges in securing housing that meets their needs and budget. #### Affordability & Renter Profile ZIP code 60201 has a population of 43,744, with 45.4% of residents being renters. This indicates a significant demand for rental properties in the area. The occupancy rate of 92.3% suggests that the rental market is quite tight, with very few vacant units available. This tightness can lead to competition among renters, potentially driving up rents beyond the FMR levels. Given the median household income of $90,545, the average renter in Evanston is likely to be middle-class individuals or families. A substantial portion of these renters would find it challenging to afford the actual market rents without assistance, making the Section 8 program a critical component of the local housing ecosystem. #### Investor Angle From an investor perspective, the ZIP code 60201 presents both opportunities and challenges. The Fair Market Rent (FMR) for a two-bedroom unit is $2370, while the Zillow median price suggests a much lower implied rental rate. This discrepancy means that investors participating in the Section 8 program could potentially see positive cash flow, especially if they manage to acquire properties at or below the median price. However, the high price-to-FMR ratio of 13.3x indicates that property values are significantly higher than the FMR, which could make it difficult to purchase properties at a price that allows for sustainable cash flow. Additionally, the tight rental market and high occupancy rate suggest that there is strong demand for rental properties, but also that finding tenants willing to pay only the FMR might be challenging. Investment grade in this ZIP code would be considered moderate to high risk due to the high property values relative to the FMR. Investors should carefully consider the potential for vacancy and the likelihood of finding tenants willing to accept the voucher rates. #### Specific Actionable Insights 1. **Focus on Properties Below Median Value**: To ensure positive cash flow, investors should focus on acquiring properties that are priced below the Zillow median of $378,280. This will help them achieve a better price-to-rent ratio and reduce the risk of negative cash flow. 2. **Engage with Landlords Already Participating in Section 8**: Since the rental market is tight, it is advisable to engage with landlords who already have experience with the Section 8 program. They are more likely to understand the dynamics and be willing to accept the FMR rates. 3. **Consider Multi-Family Units**: Given the high FMR for larger units (e.g., 3BR at $3050 and 4BR at $3530), investors might find more success in multi-family buildings where they can diversify their tenant base and spread the risk across multiple units. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 60201 is to **Hold**. While there are opportunities for positive cash flow, the high price-to-FMR ratio and tight rental market present significant challenges. Investors should proceed cautiously, focusing on properties that are priced below the median and engaging with experienced landlords. The overall risk profile suggests that buying into this market requires careful consideration and strategic planning.

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.