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 | $1,480 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,600 |
| 5 Bedrooms | $3,016 |
| 6 Bedrooms | $3,378 |
| 7 Bedrooms | $3,648 |
| 8 Bedrooms | $3,830 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,770 | $187,875 | 0.94% | C |
| 3BR | $2,280 | $237,591 | 0.96% | C |
| 4BR | $2,600 | $283,552 | 0.92% | C |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 60432 in Joliet, Illinois reveals a competitive rental environment where voucher tenants can generate cash flow, but only marginally. The HUD Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1470, while the Zillow Observed Rental Index (ZORI) stands at $1498. This indicates that landlords accepting Section 8 vouchers will see a slight reduction in potential rental income, approximately $28 per unit, compared to the market rate.
To further contextualize the financial landscape, the median home value in ZIP 60432 is $197,874. Using this figure, we can calculate a rent-to-price ratio of about 0.75%, suggesting that rental properties are generally affordable relative to the cost of homeownership. However, this ratio also implies that the appreciation potential in the housing market might be limited, making steady cash flow and stability more attractive investment characteristics.
The dynamics between renting and buying in this area are influenced by the fact that there is no available data on the median Days on Market (DOM) and the share of homes that have experienced price cuts. Despite this lack of detail, the overall market conditions suggest that rental income remains a reliable source of revenue for investors. Given the close alignment between the HUD FMR and the ZORI, the primary benefit for Section 8 investors lies in the stability of cash flow rather than significant appreciation or high margins.
The strongest angle for investors in ZIP 60432 is the stability of cash flow, ensuring a predictable and consistent income stream from Section 8 voucher tenants despite the marginal difference between the HUD FMR and market rents.
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.