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 | $1,360 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,630 | $174,426 | 0.93% | C |
| 3BR | $2,100 | $269,805 | 0.78% | D |
| 4BR | $2,390 | $303,807 | 0.79% | D |
| 5BR | $2,772 | $346,506 | 0.8% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 60445 (Midlothian, IL) reveals a favorable rental environment. The HUD Fair Market Rent (FMR) for the area is set at $1450 for the fiscal year 2024, which exceeds the market rent of $1,249 as reported by the Census ACS. This indicates that voucher tenants will generally provide positive cash flow at the FMR rate, even without considering premium units. The median home value in Midlothian is $216,841, leading to a rent-to-price ratio of approximately 0.67%, suggesting that the rental market is relatively strong compared to the housing market.
With the median days on market (DOM) being N/A and a negligible 0.3% of homes experiencing price cuts, it's evident that the local real estate market is stable. These factors indicate low volatility and a consistent demand for both rentals and home purchases. However, given the limited data on DOM, the focus should remain on the robust rental income potential rather than speculative home appreciation.
The strongest angle for investors in this market is cash flow, as the discrepancy between the HUD FMR and the average market rent ensures a steady and reliable income stream from voucher tenants. This makes ZIP 60445 an attractive investment opportunity for those seeking predictable returns.
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.