Location: Grundy County, 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 | $1,480 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,520 |
| 4 Bedrooms | $2,900 |
| 5 Bedrooms | $3,364 |
| 6 Bedrooms | $3,768 |
| 7 Bedrooms | $4,069 |
| 8 Bedrooms | $4,272 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,520 | $243,030 | 1.04% | B |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 60407 is set to offer a balanced mix of opportunities and challenges for landlords and small-portfolio investors over the next 12-24 months. The median home value stands at $217,808, indicating a relatively affordable market compared to many other areas. This figure suggests that there is still room for price adjustments based on market demand, but the lack of percentage data on listings being reduced and the median days on market (DOM) signals stability rather than a rapidly changing environment.
On the rental side, the Fair Market Rent (FMR) for ZIP 60407 as projected for fiscal year 2024 is $1,480, while the current market rent, according to Census ACS data, is slightly higher at $1,510. This modest gap between the two figures implies that rental prices are expected to remain steady, with little upward pressure likely to push them significantly higher in the near future. However, the slight premium of current market rents over the FMR suggests that landlords can maintain their rental rates without substantial adjustments, which is favorable for cash flow management.
For long-term investors considering the appreciation potential in ZIP 60407, the data points to a cautious outlook. While the area's affordability could attract first-time buyers and those looking to relocate, the absence of strong growth indicators such as a high percentage of reduced listings or a significant drop in DOM means that rapid appreciation is unlikely. Instead, the market appears to be stable, with gradual increases in property values driven by inflation and economic growth rather than speculative bubbles or sudden shifts in demand.
Investors should focus on maintaining properties and ensuring they are well-positioned to compete in the rental market. With the median home value remaining relatively low, there is an opportunity to acquire properties at attractive prices, especially if they are willing to negotiate. However, the expectation should be for moderate returns on investment, aligning with the broader economic trends rather than outpacing them.
In summary, ZIP 60407 presents a scenario where stability is key. Landlords can expect to keep rental prices steady, and long-term investors should anticipate gradual property value increases. The setup implies a reliable, albeit conservative, investment strategy for those looking to capitalize on the real estate market in this area.
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.