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 | $1,770 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,120 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,110 |
| 5 Bedrooms | $3,608 |
| 6 Bedrooms | $4,041 |
| 7 Bedrooms | $4,364 |
| 8 Bedrooms | $4,582 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,120 | $300,414 | 0.71% | D |
| 3BR | $2,730 | $350,542 | 0.78% | D |
| 4BR | $3,110 | $498,141 | 0.62% | D |
| 5BR | $3,608 | $531,702 | 0.68% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 60441, Lockport, IL, reveals a rental market where the Federal Housing Administration's Fair Market Rent (FMR) of $1820 for fiscal year 2024 is below the actual market rent of $2,186, as indicated by Zillow's Observed Rental Index (ZORI). This gap means that voucher tenants will only cashflow marginally, requiring landlords to seek efficiencies or accept slightly lower margins to remain competitive.
To derive the rent-to-price ratio, we use the median home value of $352,650. The monthly mortgage payment for a median-priced home, assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, would be approximately $1,780. This figure, combined with property taxes and maintenance costs, brings the total monthly cost closer to the FMR of $1820. However, since the market rent is higher at $2,186, it suggests that properties rented at the FMR level will still provide a modest positive cashflow, but likely only on units that are well-maintained or located in desirable areas.
The median days on market (DOM) of 17 days and a price-cut share of 0.2% indicate a relatively stable rental market with quick turnover. These metrics suggest that the supply and demand dynamics are favorable for landlords, as properties are being leased quickly without significant concessions. In this context, the rent-vs-buy dynamics do not significantly impact the decision-making process for investors, as the primary focus remains on rental income rather than home ownership.
The strongest investor angle in ZIP 60441 is stability. Given the low days on market and minimal need for price reductions, investors can expect consistent and reliable rental income, making it an attractive option for those seeking steady returns over the long term.
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.