Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,650 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,550 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 60429, Hazel Crest, IL, reveals a unique blend of yield and stability that positions it as a moderate opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1980, which is significantly higher than the current market rent of $1332. This suggests a potential upside for those willing to navigate the rental market dynamics.
When considering the home value of $173,864, the yield appears promising, especially when compared to the FMR. However, the stability indicators paint a slightly different picture. With only 26.0% of residents being renters, the market has a relatively low percentage of tenants, which could affect the demand for rental properties. Additionally, the days on market (DOM) average of 38 days indicates that properties might take longer to lease out, potentially affecting cash flow consistency.
The median household income in the area is $66,988, which is a positive sign for tenant reliability and the ability to pay rent. Despite this, the overall mix of a higher FMR versus market rent and a lower percentage of renters suggests that while there is potential for higher returns, the market also carries some risk due to less stable demand.
In conclusion, ZIP 60429 presents itself as a market that offers a balance between yield and stability. It is neither a high-yield/low-stability flip-style market nor a purely steady-cashflow zone. Instead, it leans towards an area where investors can achieve reasonable yields with a bit more attention to market conditions and tenant selection to ensure consistent cash flow.
Data Sources: FMR data from HUD (2027). 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.