Section 8 Fair Market Rent (FMR) for ZIP 60404 - 2027

Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, IL HUD Metro FMR Area

Investment Score for ZIP 60404

C
Monthly Rent (2BR)
$2,760
Median Price (2BR)
$309,693
1% Rule
0.89%
Annual Yield
10.69%

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$2,300
1 Bedroom$2,440
2 Bedrooms$2,760
3 Bedrooms$3,550
4 Bedrooms$4,050
5 Bedrooms$4,698
6 Bedrooms$5,262
7 Bedrooms$5,683
8 Bedrooms$5,967

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $2,760 $309,693 0.89% C
3BR $3,550 $385,045 0.92% C
4BR $4,050 $482,445 0.84% C
5BR $4,698 $525,590 0.89% C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
20,385
Median Household Income
$122,171
Housing Units
7,832
Renter Percentage
4.9%
Occupancy Rate
95.9%
Renter Occupied
368

2130 FMR (zip FY 2024) stands as the benchmark for fair market rent in Shorewood, IL, but the actual market rent, at $1,779 (Census ACS), suggests a competitive edge for landlords willing to offer units below the FMR. The median home value of $404,145 underscores a stable residential market, which can be advantageous for long-term investments. With only 4.9% of the population identified as renters, it's clear that Shorewood leans heavily towards homeownership, indicating a niche rental market. However, the median income of $122,171 provides a strong financial base for potential tenants, making it feasible for them to afford higher rents or housing costs. The day DOM being listed as N/A points to either limited data availability or a swift turnover rate in rentals, which could benefit landlords looking for quick tenancy. A mere 0.3% price-cut share signals a robust demand for available rentals, without the need for significant price adjustments to attract tenants.

In the context of Section 8 eligibility, the gap between the FMR and the actual market rent presents an opportunity for landlords. By accepting Section 8 tenants, they can fill vacancies with minimal risk of rent default, given the area's high median income. Additionally, the low price-cut share indicates that properties in Shorewood generally command their asking price, suggesting that landlords might find it easier to justify the slightly lower rents typical of Section 8 contracts. In conclusion, Shorewood, IL, with its strong economic indicators and competitive rental market, remains a favorable location for landlords to consider Section 8 participation, especially for those who can offer units at or below the $2130 FMR.

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.