Section 8 Fair Market Rent (FMR) for ZIP 60462 - 2027

Investment Score for ZIP 60462

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,640
1 Bedroom	$1,730
2 Bedrooms	$1,960
3 Bedrooms	$2,520
4 Bedrooms	$2,880
5 Bedrooms	$3,341
6 Bedrooms	$3,742
7 Bedrooms	$4,041
8 Bedrooms	$4,243

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,960	$256,689	0.76%	D
3BR	$2,520	$390,670	0.65%	D
4BR	$2,880	$485,374	0.59%	F
5BR	$3,341	$606,681	0.55%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60462 (Orland Park, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 60462 is set by HUD for 2026, with the following figures: - 0BR: $1490 - 1BR: $1590 - 2BR: $1790 (22.3% of median income) - 3BR: $2310 - 4BR: $2670 To understand how these figures compare to actual rents, we need to consider the price-to-FMR ratio. For a 2BR unit, the Zillow median price is $255,362, which translates into a monthly mortgage payment of approximately $1,170 assuming a 30-year fixed-rate mortgage at 4.5%. However, the price-to-FMR ratio of 11.9x indicates that the median home value is significantly higher than the rent levels suggested by FMR. This suggests that actual rental prices in the area could be much higher than the FMR rates, potentially making it difficult for Section 8 voucher holders to find suitable housing. The voucher program caps the amount landlords can charge, so if actual rents exceed FMR, landlords may be less willing to accept vouchers due to lower profitability. #### Affordability & Renter Profile ZIP code 60462 has a population of 41,456, with 17.1% being renters. The occupancy rate stands at 95.5%, indicating a relatively tight rental market. Given the median household income of $96,526, the affordability of a 2BR unit at $1790 per month (which is 22.3% of the median income) suggests that it is affordable for the average resident. However, the high price-to-FMR ratio implies that the market is likely overpriced relative to what the typical Section 8 voucher holder can afford. This tight market means that there is strong competition among renters, and those relying on Section 8 vouchers may struggle to secure housing. #### Investor Angle From an investor perspective, the key question is whether properties can generate positive cash flow at the FMR rates. Assuming a 2BR unit is rented at $1790 per month, we need to consider the costs involved in owning and maintaining the property. If the mortgage payment is around $1,170, then the remaining $620 would cover property taxes, insurance, maintenance, and other expenses. Property taxes in Orland Park are typically around 2.2% of the assessed value, which for a $255,362 home would be about $562 annually or $47 per month. Insurance costs vary but can be estimated at around $100 per month. Maintenance and other miscellaneous expenses might add another $100-$150 per month. Therefore, the total monthly expenses would be approximately $200-$250 above the mortgage payment, totaling $1,370-$1,420 per month. At $1790 per month, the net cash flow would be between $370-$420, which is positive but relatively low given the high purchase price. The investment grade in this ZIP code would be moderate to low, primarily because of the high price-to-FMR ratio. While the cash flow is positive, the returns are modest compared to the initial capital investment required. Additionally, the tight rental market could pose challenges in finding tenants who qualify for Section 8 vouchers, especially if they are unwilling to accept higher rents. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR apartments. These units have lower FMR rates ($1490 and $1590 respectively), which might still allow for positive cash flow while being more affordable for voucher holders. 2. **Consider Multi-Family Properties**: Single-family homes are expensive, with a median value of $255,362. Multi-family properties, such as duplexes or small apartment buildings, could offer better cash flow opportunities. These properties often have lower acquisition costs relative to their rental income potential. 3. **Engage with Local Landlords**: Networking with local landlords who already accept Section 8 vouchers can provide valuable insights into the market dynamics and tenant preferences. This can help investors tailor their offerings to meet the needs of voucher holders and ensure a steady stream of qualified tenants. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 60462 is to **Hold**. While there are some opportunities for positive cash flow, particularly with smaller units, the high purchase prices and tight rental market make it challenging to find properties that are both affordable and attractive to voucher holders. Investors should carefully evaluate the potential for positive cash flow and consider diversifying their portfolio to include multi-family properties or smaller units to maximize returns and minimize risks.

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.