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 | $1,360 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,440 | $142,415 | 1.01% | B |
| 2BR | $1,630 | $267,577 | 0.61% | D |
| 3BR | $2,100 | $317,549 | 0.66% | D |
| 4BR | $2,390 | $376,919 | 0.63% | D |
| 5BR | $2,772 | $423,199 | 0.66% | D |
U.S. Census Bureau data (2024)
Berwyn, IL (ZIP 60402) offers a stable, urban-suburban blend just west of Chicago, characterized by its historic bungalow stock and walkable neighborhoods. The area maintains a strong sense of community anchored by institutions like MacNeal Hospital, which serves as a major local employer and healthcare hub. Recent development efforts along the Cermak Road corridor have focused on revitalizing commercial spaces, adding mixed-use amenities that appeal to working professionals. The village also enforces strict property maintenance codes, ensuring neighborhoods remain tidy and preserving the long-term value of the housing stock.
From a financial perspective, Berwyn presents a clear opportunity for Section 8 investors. The HUD SAFMR for a 2-bedroom unit is $1,580, significantly outpacing the current market rent of $1,382 (Zillow ZORI). This results in a positive spread of $198 per month for voucher holders. With median home values at $303,484 and a median 2BR sale price of $259,914, entry costs are reasonable compared to closer-in Chicago suburbs. Properties are moving at a moderate pace, with a median of 71 days on market, indicating a balanced environment for acquisitions.
The tenant pool is supported by a solid economic baseline. The area has a renter share of 36.1% and a median household income of $77,718, suggesting a population that can support stable rents even outside the voucher system. Demand is further bolstered by access to the CTA Blue Line, which provides direct transit to downtown Chicago, and highly-rated schools within Berwyn South School District 100. These factors make the location attractive for families looking for affordability without sacrificing urban connectivity.
The verdict leans heavily toward cash flow. The $198 gap between the 2BR SAFMR ($1,580) and market rent ($1,382) creates an immediate revenue premium for landlords participating in the HUD program. Given the reasonable median home value of $303,484 and the area’s commitment to property maintenance, investors can expect reliable income with manageable asset upkeep. Berwyn is a prime market for maximizing rental yield through Section 8.
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.