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 | $1,520 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,820 | $184,782 | 0.98% | C |
| 3BR | $2,340 | $233,434 | 1% | B |
| 4BR | $2,670 | $251,123 | 1.06% | B |
U.S. Census Bureau data (2024)
The ZIP code 60433 in Joliet, IL, presents an interesting scenario for real estate investors when considering both yield and stability. For the fiscal year 2024, the Fair Market Rent (FMR) for Section 8 housing in this area is set at $1,530, which is notably higher than the market rent of $1,357. This indicates a potential high-yield market for landlords who can leverage the Section 8 program.
To understand the yield potential further, compare the FMR to the average home value in the area, which stands at $207,291. The disparity between the home value and the rental income suggests that properties could be acquired at a price point where the rental income would provide a substantial return on investment. However, the yield advantage is somewhat mitigated by the fact that the market rent is lower than the FMR, indicating that non-Section 8 tenants might be harder to find or less willing to pay the higher rates.
Moving onto stability, the ZIP code has a significant portion of its population renting, with 35.9% of residents being renters. This figure alone does not indicate instability but rather a moderate level of rental demand. The median household income in the area is $66,515, which is relatively stable and provides a good indicator of the financial health of the tenant pool. However, the lack of data on the number of days on market (DOM) means we cannot fully assess the speed at which properties are rented out, which is a key factor in stability.
Given these factors, 60433 appears to be a market that offers a balance between yield and stability. It is not a high-yield/low-stability 'flip-style' market, as there is sufficient demand and income levels to support steady cash flow. However, it also isn't purely a steady-cashflow zone due to the higher FMR compared to market rent, which introduces some variability in rental income sources. Investors should focus on leveraging the higher FMR through the Section 8 program while keeping an eye on the broader market conditions to ensure consistent occupancy and income.
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.