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 | $1,440 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,730 | $184,484 | 0.94% | C |
| 3BR | $2,220 | $300,071 | 0.74% | D |
| 4BR | $2,540 | $340,127 | 0.75% | D |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 60415, located in Chicago Ridge, IL, include significant tenant turnover. The market rent stands at $1,545, while the Fair Market Rent (FMR) for FY 2024 is $1,420. This discrepancy can lead to frequent changes in occupancy as tenants seek to maximize their benefits, resulting in increased administrative costs and potential vacancy periods. Additionally, the vacancy exposure is heightened due to the lack of data on days on market (DOM), indicating uncertainty around how quickly units can be filled. Deferred maintenance is another concern, considering the typical home value of $222,203 and a median household income of $68,964. These factors suggest that residents may struggle to afford substantial repairs, which could impact the overall condition of properties over time.
However, these risks are somewhat mitigated by the high renter share in the area, which is 49.9%. This indicates a strong likelihood of demand for rental properties, particularly those accepting Section 8 vouchers. A dense rental market often correlates with higher demand for subsidized housing options, which can help maintain steady occupancy rates despite the aforementioned challenges.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 60415.
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.