Section 8 Fair Market Rent (FMR) for ZIP 60411 - 2027

Investment Score for ZIP 60411

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	$1,410
1 Bedroom	$1,500
2 Bedrooms	$1,690
3 Bedrooms	$2,170
4 Bedrooms	$2,480
5 Bedrooms	$2,877
6 Bedrooms	$3,222
7 Bedrooms	$3,480
8 Bedrooms	$3,654

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	$1,690	$124,371	1.36%	A
3BR	$2,170	$182,047	1.19%	B
4BR	$2,480	$237,654	1.04%	B
5BR	$2,877	$263,483	1.09%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60411 (Chicago Heights, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 60411 is set by HUD for 2026 as follows: - 0BR: $1220 - 1BR: $1300 - 2BR: $1470 (which is 28.4% of the median household income) - 3BR: $1890 - 4BR: $2190 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rents in the area must be compared to these figures to understand how feasible it is for voucher holders to find suitable housing. Given the occupancy rate of 87.2%, there is a strong demand for rental properties, which could drive up actual rents above the FMR levels. #### Affordability & Renter Profile ZIP code 60411 has a population of 52,175, with 34.8% being renters. The median household income is $62,073, indicating a moderate-income community. The affordability of housing is a critical concern, especially given that the FMR for a 2BR unit is $1470, which represents 28.4% of the median income. This suggests that a significant portion of the population might struggle to afford higher rents without assistance. The price-to-FMR ratio for a 2BR unit is 6.4x, meaning the median home value is significantly higher than the rent. This ratio indicates that the rental market is relatively affordable compared to the overall housing market, but still presents challenges for low-income households. The high demand for rentals, coupled with the limited supply, creates a competitive environment where rents can exceed the FMR, making it difficult for voucher holders to secure housing. #### Investor Angle From an investor’s perspective, the cash flow potential in ZIP code 60411 needs to be evaluated against the FMR. If we consider the Zillow median price for a 2BR unit at $113,013, and assume a typical mortgage rate and down payment, the monthly mortgage payment would be around $565 (based on a 30-year fixed-rate mortgage at 5%). Adding property taxes, insurance, and maintenance costs, the total monthly expenses could range between $700-$800. Given the FMR for a 2BR unit is $1470, the potential monthly cash flow would be approximately $670-$770. This positive cash flow makes the ZIP code attractive for investors who can manage their properties efficiently. However, the investment grade would depend on the local vacancy rates and the ability to maintain consistent tenancy. With an occupancy rate of 87.2%, the market appears to be tight, favoring landlords who can offer competitive rents and amenities. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Since the actual rents can exceed the FMR, investors should focus on acquiring units that are priced below the FMR to attract Section 8 voucher holders. For instance, a 2BR unit priced at $1400 would be more likely to be occupied by a voucher holder, providing a steady and reliable source of income. 2. **Consider Property Improvements**: To compete in a tight rental market, property improvements can increase the attractiveness and rental value of units. Simple upgrades like new appliances, flooring, or paint can help justify slightly higher rents while remaining within the FMR limits. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the availability of vouchers and the preferences of voucher holders. This can help in tailoring marketing strategies and property management practices to better serve this demographic. #### Bottom Line For Section 8-focused investors, ZIP code 60411 presents a moderately favorable market. The positive cash flow potential and the tight rental market suggest that it is a good buy opportunity, provided investors can acquire properties at or below the FMR and manage them effectively. However, the challenge of finding units that are priced appropriately and the competition in the rental market mean that careful selection and management are crucial. Overall, the recommendation is to **buy**, but with a strategic approach to ensure long-term profitability and occupancy stability.

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.