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 | $1,300 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,010 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,010 | $326,175 | 0.62% | D |
| 4BR | $2,290 | $375,475 | 0.61% | D |
U.S. Census Bureau data (2024)
The ZIP code 60421, located in Kane County, Illinois, stands out due to its unique demographic and economic characteristics. With a population of 3,649 residents, only 12.5% of whom rent their homes, it indicates a predominantly owner-occupied area. The median income here is $103,083, which is notably higher than the national average, reflecting a relatively affluent community. Additionally, the median home value in ZIP 60421 is $311,104, suggesting that homeownership is a significant factor in the local economy.
Turning to the specifics of Section 8 housing economics, the Fair Market Rent (FMR) for ZIP 60421 in fiscal year 2024 is set at $1,420. This figure represents the maximum amount that a landlord can receive through the voucher program. However, the current market rent, as reported by the Census Bureau's American Community Survey, is $1,188. This means that landlords participating in the Section 8 program can potentially charge a rate above the market average, making it an attractive option for those looking to rent out properties in this ZIP code.
Given these data points, the economic signature of ZIP 60421 reads as stable. The high median income and median home values suggest a robust local economy where most residents can afford homeownership without relying heavily on rental assistance programs. The disparity between the FMR and the market rent also indicates a healthy margin for landlords, allowing them to participate in the Section 8 program while still receiving a competitive rate. For small-portfolio investors, this ZIP code offers a reliable environment with predictable returns and manageable risks.
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.