Section 8 Fair Market Rent (FMR) for ZIP 60435 - 2027

Investment Score for ZIP 60435

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,570
1 Bedroom	$1,660
2 Bedrooms	$1,880
3 Bedrooms	$2,420
4 Bedrooms	$2,760
5 Bedrooms	$3,202
6 Bedrooms	$3,586
7 Bedrooms	$3,873
8 Bedrooms	$4,067

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,880	$231,209	0.81%	C
3BR	$2,420	$292,927	0.83%	C
4BR	$2,760	$342,559	0.81%	C
5BR	$3,202	$340,813	0.94%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60435 (Joliet, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Joliet, IL (ZIP 60435), as per the 2026 guidelines, is set at $1630 for a two-bedroom unit. This represents 25.6% of the median household income of $76,369. However, the actual rental market price for a two-bedroom unit, based on Zillow's median data, is significantly higher at $221,199. The price-to-FMR ratio of 11.3x indicates that the actual market rent is much higher than the FMR, which can pose significant challenges for Section 8 voucher holders. They may find it difficult to secure housing within their budget, especially if landlords are unwilling to accept the lower FMR rates. #### Affordability & Renter Profile In ZIP code 60435, approximately 33.6% of the population are renters, indicating a moderate demand for rental properties. With a median household income of $76,369, the affordability of housing is a critical issue. The high price-to-FMR ratio suggests that the rental market is relatively tight, meaning there could be limited options for low-income households. Given that 25.6% of the median income is allocated towards a two-bedroom unit, it implies that many residents might struggle to afford housing, particularly those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 60435 presents a mixed picture when considering the FMR. The FMR for a two-bedroom unit is $1630, but the actual market price is $221,199. This means that if an investor purchases a property at the median price and rents it out at the FMR, they would likely face negative cash flow. To illustrate, let's assume a conservative annual mortgage payment of $15,000 (based on a 3.5% interest rate). Adding typical expenses such as property taxes, insurance, maintenance, and utilities, the total annual cost could easily exceed $18,000. At an FMR of $1630 per month, the annual rental income would only be $19,560, leaving little room for profit. Given these dynamics, the investment grade for this ZIP code is relatively low for Section 8-focused investors. The gap between the FMR and the actual market price is substantial, making it challenging to achieve positive cash flow without significant subsidies or other financial incentives. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider smaller units like one-bedroom apartments where the FMR is $1450. This could help bridge the gap between the purchase price and the rental income, potentially leading to better cash flow outcomes. 2. **Seek Out Subsidies and Incentives**: Investors should explore additional government subsidies and incentives beyond just the Section 8 voucher program. For instance, programs like Low-Income Housing Tax Credits (LIHTC) can provide significant tax benefits that make the investment more viable. 3. **Consider Strategic Pricing**: While renting at the FMR is necessary for Section 8 tenants, investors might want to consider strategic pricing for non-voucher tenants. By offering slightly above FMR rates to non-voucher tenants, investors can balance their portfolio and improve overall profitability. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 60435 is to **Skip**. The high price-to-FMR ratio makes it difficult to achieve positive cash flow, and the tight rental market could limit the pool of potential tenants. Unless investors have access to additional subsidies or incentives, the current market conditions do not favor investments in this ZIP code for those primarily targeting Section 8 voucher holders. --- This analysis provides a detailed overview of the rental market in ZIP code 60435, highlighting the challenges faced by both renters and investors. The data clearly shows that the actual market prices far exceed the FMR, creating a scenario where affordability is a significant concern. For investors, the high costs associated with purchasing and maintaining properties in this area, combined with the limited rental income from Section 8 vouchers, suggest that this ZIP code may not be a favorable investment opportunity at present.

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.