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 | $2,520 |
| 1 Bedroom | $2,670 |
| 2 Bedrooms | $3,020 |
| 3 Bedrooms | $3,880 |
| 4 Bedrooms | $4,440 |
| 5 Bedrooms | $5,150 |
| 6 Bedrooms | $5,768 |
| 7 Bedrooms | $6,229 |
| 8 Bedrooms | $6,540 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,020 | $217,683 | 1.39% | A |
| 3BR | $3,880 | $289,843 | 1.34% | A |
| 4BR | $4,440 | $382,098 | 1.16% | B |
| 5BR | $5,150 | $463,278 | 1.11% | B |
U.S. Census Bureau data (2024)
The real estate market in ZIP 60422 (Flossmoor, IL) presents a unique opportunity for landlords and small-portfolio investors. With a median home value of $326,937, the area remains relatively affordable compared to other suburban markets in Illinois. The fact that only 0.2% of listings have reduced their prices indicates a strong seller's market, where homes maintain their asking values without significant concessions. This signals robust pricing power for the next 12-24 months.
While the median days on market (DOM) is not available, the low percentage of price reductions suggests that homes are selling quickly once listed, which further supports the idea of a tight market. Landlords can leverage this by maintaining competitive rental rates without fear of significant vacancy periods due to overpricing.
The rent-side dynamics also favor landlords. The Fair Market Rent (FMR) for ZIP 60422 in fiscal year 2024 is set at $2,570, while the current market rate based on Census ACS data stands at $2,164. This gap implies potential for rental rate increases, aligning with the FMR, without risking tenant loss to the broader housing market. As rents rise to meet the FMR, landlords can expect higher cash flows from their properties.
For long-term investors, the setup in Flossmoor points to a realistic appreciation thesis. The combination of a stable housing market, quick sales, and rising rental rates suggests that property values will likely increase over time. However, the pace of appreciation is unlikely to be rapid, given the low percentage of price reductions and the absence of speculative bubbles. Instead, appreciation is expected to be gradual and consistent, driven by the steady demand for housing and the positive rental market fundamentals.
In summary, the current market conditions in Flossmoor provide a solid foundation for both short-term and long-term investments. Landlords can benefit from maintaining high occupancy rates and gradually increasing rents, while small-portfolio investors can anticipate modest but reliable appreciation in their property values.
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.