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 | $1,650 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,550 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,550 | $313,488 | 0.81% | C |
| 4BR | $2,910 | $411,072 | 0.71% | D |
| 5BR | $3,376 | $609,277 | 0.55% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 60449 might raise several concerns regarding the financial viability of investing in properties within this area, especially in relation to Section 8 housing programs. Here, we address these concerns directly using available data.
The first objection is whether the Fair Market Rent (FMR) of $1,290 for ZIP 60449 in fiscal year 2024 will sufficiently cover the mortgage on a property valued at $335,391. To evaluate this, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly payment on a $335,391 home would be approximately $1,600. This means that the FMR of $1,290 falls short by about $310 per month. However, it's important to note that the actual mortgage amount depends on the down payment and other factors such as property taxes and insurance, which are not covered here. Additionally, the FMR is subject to change annually, and future increases could help bridge this gap.
Another concern is whether there is sufficient rental demand at a vacancy rate of 5.4%. A 5.4% vacancy rate indicates a relatively low level of vacancies, suggesting strong demand for rental properties in ZIP 60449. While this figure does not guarantee that all units will be occupied, it does imply a competitive market where landlords can likely find tenants willing to pay the FMR. The demand for affordable housing is often consistent, even in areas with low vacancy rates, due to the ongoing need for subsidized housing options.
The final objection is whether voucher payments will keep pace with the market rents, which are currently at $1,555. The FMR of $1,290 is lower than the market rent, indicating a potential shortfall if relying solely on voucher income. However, landlords can negotiate with tenants to make up the difference, or they might consider offering amenities or services that justify a higher rent. It's also worth noting that voucher amounts can vary based on individual tenant circumstances and the specifics of the housing contract, so while the average FMR might be lower, some voucher holders may qualify for higher assistance.
In conclusion, while the data shows that the FMR in ZIP 60449 may not fully cover the mortgage on a property valued at $335,391, and that market rents exceed voucher payments, the low vacancy rate suggests strong demand for rental properties. Investors should carefully consider their financial strategy, including potential supplementary income sources, before making decisions based on these figures.
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.