Section 8 Fair Market Rent (FMR) for ZIP 60440 - 2027

Investment Score for ZIP 60440

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	$1,950
1 Bedroom	$2,070
2 Bedrooms	$2,340
3 Bedrooms	$3,010
4 Bedrooms	$3,440
5 Bedrooms	$3,990
6 Bedrooms	$4,469
7 Bedrooms	$4,827
8 Bedrooms	$5,068

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	$2,340	$250,505	0.93%	C
3BR	$3,010	$316,684	0.95%	C
4BR	$3,440	$399,112	0.86%	C
5BR	$3,990	$410,312	0.97%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60440 (Bolingbrook, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Bolingbrook, IL, in 2026 is set at $2060 for a two-bedroom unit. This figure represents 26.4% of the median household income in the area, which stands at $93,494. However, the actual rental market in Bolingbrook appears to be significantly higher than the FMR. The Zillow median price for a two-bedroom home is $243,245, and the price-to-FMR ratio is 9.8x, indicating that the actual rent for a similar property could be around $19,988 annually or approximately $1665 per month. This suggests that the actual rents are likely above the FMR, creating a constraint for Section 8 voucher holders who can only pay up to the FMR amount. #### Affordability & Renter Profile Given the median household income of $93,494, the FMR for a two-bedroom unit at $2060 is relatively affordable, representing about 26.4% of the median income. However, the high price-to-FMR ratio indicates that the market is quite tight, with actual rents being much higher than the FMR. This makes it challenging for low-income renters to find affordable housing, especially those relying on Section 8 vouchers. The occupancy rate of 98.0% further supports the notion that the market is very tight, with almost all units occupied. With 25.0% of the population being renters, there is a significant demand for rental properties, but the supply seems limited, particularly for those seeking affordable options. #### Investor Angle From an investor perspective, the ZIP code 60440 presents a mixed scenario. While the median household income is relatively high, the actual rents are also high, suggesting strong cash flow potential for landlords. However, the FMR is significantly lower than the actual market rates, which means that properties rented through Section 8 vouchers would generate less income compared to market-rate rentals. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. Assuming a typical expense ratio of 50% (including mortgage payments, taxes, insurance, maintenance, etc.), the net income from a two-bedroom unit at FMR would be around $1030 per month. This is still a positive cash flow, but it is considerably lower than what could be achieved by renting at market rates. In terms of investment grade, Bolingbrook has a strong economic foundation with a high median income, which generally supports stable rental markets. However, the tightness of the market and the high actual rents suggest that investors might face challenges in finding properties that are both affordable and suitable for Section 8 tenants. Additionally, the high price-to-FMR ratio implies that investors would need to be selective in choosing properties that offer a balance between affordability and profitability. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring properties that are closer to the FMR levels. For instance, a two-bedroom unit priced at $2060 per month would be ideal for Section 8 tenants. This would ensure compliance with voucher limits while still generating a positive cash flow. 2. **Consider Multi-Family Properties**: Given the high occupancy rate and the percentage of renters, multi-family properties might be more attractive. These properties can spread the risk across multiple units and potentially attract a mix of market-rate and Section 8 tenants, balancing the overall income. 3. **Explore Subsidized Housing Programs**: Since the actual rents are significantly higher than the FMR, exploring additional subsidized housing programs or partnerships with local agencies might help bridge the gap and make properties more accessible to low-income renters. #### Bottom Line For Section 8-focused investors, Bolingbrook, IL, (ZIP 60440) presents a challenging yet potentially rewarding market. The high median income and occupancy rate indicate a robust demand for rental properties, but the tight market and high actual rents mean that finding properties within the FMR range can be difficult. Therefore, the recommendation is to **Hold** on existing investments and be cautious when acquiring new properties. Focus on affordable units and consider multi-family properties to diversify the tenant base and stabilize income. Additionally, explore subsidies and partnerships to enhance the feasibility of Section 8 rentals in this area.

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.