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 | $2,140 |
| 1 Bedroom | $2,270 |
| 2 Bedrooms | $2,570 |
| 3 Bedrooms | $3,300 |
| 4 Bedrooms | $3,770 |
| 5 Bedrooms | $4,373 |
| 6 Bedrooms | $4,898 |
| 7 Bedrooms | $5,290 |
| 8 Bedrooms | $5,555 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,570 | $352,054 | 0.73% | D |
| 3BR | $3,300 | $545,308 | 0.61% | D |
| 4BR | $3,770 | $743,751 | 0.51% | F |
| 5BR | $4,373 | $1,059,963 | 0.41% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 60203 in Evanston, Illinois, for fiscal year 2024 is set at $2520. This figure represents the maximum amount that a landlord can charge a tenant participating in the Section 8 housing choice voucher program. In contrast, the market rent for the area, based on Census ACS data, is significantly lower at $1795. This discrepancy means that landlords who accept Section 8 vouchers can expect positive cash flow when renting properties at the HUD FMR.
To provide a clearer picture, let's consider the median home value in ZIP 60203, which stands at $580,328. Using this figure, we can calculate the rent-to-price ratio. With an annual rent of $21,240 (based on the HUD FMR), the rent-to-price ratio comes out to approximately 3.66%. This indicates that rental income would represent a relatively modest portion of the property's value, but it still offers a solid cash flow advantage over the market rent.
Given the data, it's evident that voucher tenants in ZIP 60203 will cashflow at the HUD FMR, providing landlords with a substantial financial benefit. The higher rent compared to the market rate ensures that landlords can cover their costs and generate profit without needing to rely on premium units. This makes the area particularly attractive for landlords looking to maximize their returns through the Section 8 program.
The strong investor angle here is cashflow. Landlords in ZIP 60203 can expect to see significant positive cash flow when renting to voucher tenants at the HUD FMR, making it an excellent opportunity for those focused on generating rental income.
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.