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 | $222,100 | 0.98% | C |
| 2BR | $2,460 | $316,520 | 0.78% | D |
| 3BR | $3,160 | $477,486 | 0.66% | D |
| 4BR | $3,610 | $782,030 | 0.46% | F |
| 5BR | $4,188 | $1,346,200 | 0.31% | F |
U.S. Census Bureau data (2024)
The ZIP code 60202, located in Evanston, Illinois, presents an interesting scenario for both renters and landlords. The median household income here stands at $98,989, which provides a baseline for understanding the financial capabilities of residents. At the market rate, known as the Zillow Observed Rent Index (ZORI), renters are expected to pay $2,180 per month. This figure represents the typical rent price for the area.
However, when comparing this market rate to the Federal Market Rent (FMR) standard, which is set at $2,020 for ZIP 60202 in fiscal year 2024, there is a noticeable discrepancy. The FMR is the amount that housing authorities will typically pay on behalf of a tenant with a Section 8 voucher. This means that landlords who accept vouchers might see slightly lower rental payments compared to the market rate, but the difference is minimal—only $160 per month.
Evanston has a significant portion of its population renting their homes, with 41.9% of the 32,341 residents being tenants. This high percentage indicates a robust rental market, but it also suggests intense competition among landlords to attract tenants. The affordability gap between the median income and the market rate rent highlights a challenge for many households. While the median income is substantial, paying $2,180 monthly in rent could be a strain for some families, especially when considering other living expenses.
The takeaway for landlords is clear: accepting Section 8 vouchers can be a strategic choice. Given the slight difference between the market rate and the FMR, and the high number of renters, landlords who accept vouchers are positioning themselves to capture a segment of the market that might otherwise struggle to find affordable housing. This strategy can help landlords maintain occupancy rates and contribute to the community's housing stability, even if it means a minor reduction in potential rental income.
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.