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 | $2,190 |
| 1 Bedroom | $2,320 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,370 |
| 4 Bedrooms | $3,850 |
| 5 Bedrooms | $4,466 |
| 6 Bedrooms | $5,002 |
| 7 Bedrooms | $5,402 |
| 8 Bedrooms | $5,672 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,620 | $313,524 | 0.84% | C |
| 3BR | $3,370 | $383,001 | 0.88% | C |
| 4BR | $3,850 | $479,372 | 0.8% | C |
| 5BR | $4,466 | $587,656 | 0.76% | D |
U.S. Census Bureau data (2024)
ZIP code 60463, located in Palos Heights, IL, falls within the larger Chicago-Joliet-Naperville, IL HUD Metro FMR Area. To understand its position within this metro area, let's examine its Fair Market Rent (FMR), market rent, home value, and renter share.
The Fair Market Rent for ZIP 60463 in fiscal year 2024 is set at $2,160. This figure represents the maximum rent that a household receiving federal rental assistance can be charged. In comparison, the average market rent for the area is $2,559. This suggests that while the FMR is lower than the market rent, it is still relatively close, indicating that 60463 is not significantly undervalued compared to other areas within the metro.
The median home value in ZIP 60463 stands at $389,967. This places it slightly above the typical range for the Chicago-Joliet-Naperville, IL HUD Metro FMR Area, which generally has home values ranging from $300,000 to $400,000. However, it is important to note that home values can vary widely across different neighborhoods within the metro area.
The renter share in ZIP 60463 is 7.3%. This percentage is notably lower than the average renter share in the Chicago-Joliet-Naperville, IL HUD Metro FMR Area, which typically ranges from 10% to 20%. A lower renter share usually indicates a higher proportion of homeowners, suggesting that 60463 leans more towards being a residential community with a strong homeownership base.
Based on these figures, ZIP 60463 appears to be a mid-tier neighborhood within the Chicago-Joliet-Naperville, IL HUD Metro FMR Area. The FMR is slightly below the market rent, but the home values are above average, and the renter share is low. This combination suggests that while there might be some opportunity for landlords, it is not necessarily a prime location for those looking for high renter shares indicative of a Section 8 sweet spot.
However, the divergence between the FMR and market rent, along with the lower-than-average renter share, does hint at potential value pockets within the ZIP code where rental properties could offer competitive rates without sacrificing too much on the price side. For small-portfolio investors, this could mean a balanced approach to investment, offering both reasonable returns and compliance with federal rental assistance programs.
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.