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 | $1,450 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,740 | $249,584 | 0.7% | D |
| 3BR | $2,240 | $322,482 | 0.69% | D |
| 4BR | $2,560 | $395,335 | 0.65% | D |
U.S. Census Bureau data (2024)
To integrate ZIP 60458 into a Section 8 portfolio strategy, consider it primarily as a cash-flow anchor. This classification is based on the significant spread between the Fair Market Rent (FMR) set by the HUD for the Chicago-Joliet-Naperville, IL HUD Metro FMR Area and the actual market rents in the area.
The FMR for ZIP 60458 in fiscal year 2024 is $1570, while the current market rent stands at $1,271. This means that properties rented through the Section 8 program can command a higher rent compared to the general market, thereby providing a stable and predictable cash flow. The difference of $300 per unit could be substantial when scaled across a portfolio, ensuring that landlords receive a consistent income stream that is not subject to market fluctuations.
Additionally, the median home value in ZIP 60458 is $289,287, which suggests that the area has a moderate property value. While this does not directly influence the rental income, it does provide some stability in terms of property value, reducing the risk of sudden drops in equity value.
The 44.7% renter share indicates that there is a considerable portion of the population that relies on renting, making it a viable market for Section 8 tenants. However, this alone does not qualify ZIP 60458 as an appreciation play or a diversifier. The median income of $60,758 is average and does not suggest strong potential for property value appreciation or significant economic diversity.
In conclusion, ZIP 60458 should be viewed as a cash-flow anchor due to the favorable spread between FMR and market rents, which ensures steady and above-market income for landlords participating in the Section 8 program. This makes it a reliable component of a broader investment strategy aimed at generating consistent cash flow.
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.