Location: Kendall County, 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 | $1,590 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,520 |
| 4 Bedrooms | $2,820 |
| 5 Bedrooms | $3,271 |
| 6 Bedrooms | $3,664 |
| 7 Bedrooms | $3,957 |
| 8 Bedrooms | $4,155 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,950 | $271,964 | 0.72% | D |
| 3BR | $2,520 | $344,483 | 0.73% | D |
| 4BR | $2,820 | $409,917 | 0.69% | D |
| 5BR | $3,271 | $454,531 | 0.72% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 60431, located in Joliet, IL, revolves around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 60431 in fiscal year 2024 is set at $1,880, while the Census American Community Survey (ACS) indicates that the market rent is $1,410. This creates a gap of $470 per month, which translates to a 33.3% premium for landlords participating in the Section 8 program.
The higher FMR compared to the market rent makes this area a prime yield play for voucher tenants. Landlords can receive a higher monthly rental payment through the Section 8 program than they would from typical market-rate tenants. This premium helps offset the costs associated with maintaining properties and managing tenants, thereby increasing profitability. Additionally, the stability provided by government-backed vouchers ensures a steady cash flow, reducing the risk of vacancy and non-payment.
In the context of Joliet, IL, where only 6.9% of residents are renters, the median home value stands at $345,362 and the median household income is $122,870. These factors suggest that the rental market is relatively small compared to homeownership, and the demand for affordable housing is significant. By accepting Section 8 tenants, landlords can tap into a segment of the market that might otherwise be underserved, ensuring their properties remain occupied and generating income above what the open market offers.
However, it's important to note that landlords must comply with HUD standards and inspections, which can incur additional costs. Despite these requirements, the financial incentive of receiving $470 more per month than the prevailing market rate makes the Section 8 program an attractive option for maximizing yield in ZIP 60431.
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.