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 | $1,270 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,520 | $223,743 | 0.68% | D |
| 3BR | $1,950 | $348,022 | 0.56% | F |
| 4BR | $2,230 | $417,520 | 0.53% | F |
| 5BR | $2,587 | $474,179 | 0.55% | F |
U.S. Census Bureau data (2024)
In Hickory Hills, IL (ZIP 60457), the real estate market presents a nuanced scenario for landlords and small-portfolio investors. The median home value stands at $325,782, indicating a stable housing price environment. With only 0.1% of listings having reduced their prices, it's evident that sellers maintain significant pricing power. This suggests that the market is resilient against downward pressure on prices, which is particularly beneficial for those looking to hold onto properties for longer periods.
The median days on market (DOM) being listed as N/A points towards a robust sales pace, where homes are likely selling quickly once listed. This quick turnover can be advantageous for investors, as it minimizes holding costs and maximizes potential returns. However, it also means that competition among buyers could be high, leading to bidding wars that further support property values.
On the rental side, the Federal Market Rent (FMR) for ZIP 60457 in fiscal year 2024 is set at $1,390, while the current market rent, measured by Zillow's Observed Rent Index (ZORI), is $1,630. This gap between government-assisted rental rates and market rates signals an opportunity for landlords who cater to non-subsidized tenants. The higher market rents suggest that demand for rental properties remains strong, potentially allowing landlords to maintain or even slightly increase their rental rates without losing tenants.
For long-hold investors, the setup implies a moderate appreciation thesis. The stability in home values and the slight upward pressure from the rental market indicate that while rapid growth might not occur, there is a foundation for steady appreciation. Long-term investors should expect modest gains rather than explosive ones, making this area suitable for those seeking consistent, low-risk returns. However, the absence of significant DOM data and the minimal percentage of price reductions suggest a balanced market, neither overheated nor cooling down drastically.
To summarize, the combination of stable home values, strong seller pricing power, and a favorable rent-to-price ratio in Hickory Hills, IL, supports a positive outlook for real estate investment over the next 12-24 months. Investors should focus on maintaining competitive rental rates and preparing for a market that favors gradual appreciation over speculative gains.
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.