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 | $1,640 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $1,960 |
| 3 Bedrooms | $2,520 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,960 | $167,716 | 1.17% | B |
| 3BR | $2,520 | $259,742 | 0.97% | C |
| 4BR | $2,880 | $315,542 | 0.91% | C |
| 5BR | $3,341 | $358,897 | 0.93% | C |
U.S. Census Bureau data (2024)
The median household income in ZIP code 60430, Homewood, IL, stands at $96,629 according to the latest Census American Community Survey (ACS) data. The market rate for rent in this area is $1,340. This figure represents a significant portion of the average household budget, considering that rent typically should not exceed 30% of income for financial stability. At $1,340, rent would consume approximately 34.5% of the median household income, indicating a slight affordability challenge for renters.
In contrast, the Fair Market Rent (FMR) for ZIP 60430 set for fiscal year 2024 is $1,670. This is the amount that Housing Choice Voucher programs aim to cover, which is higher than the current market rate. For landlords, this means that voucher holders could potentially secure housing at rates above the market average, offering a financial advantage.
With 18.7% of the population renting and a total population of 19,838, the rental market in Homewood is relatively competitive. However, the affordability gap between the median income and both the market and voucher rates suggests that there is a segment of the population that might struggle to pay market rates without assistance. This dynamic can influence the type of tenants landlords attract and the strategies they employ to manage their properties.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While voucher payments are guaranteed and can be higher than market rates, they also come with additional administrative responsibilities and potential restrictions on rent increases. Cash-paying tenants provide immediate liquidity but may be more sensitive to economic fluctuations and less predictable in terms of long-term tenancy. Landlords should weigh these factors carefully, considering the local economic context and their own business goals.
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.