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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,980 | $115,933 | 1.71% | A+ |
| 3BR | $2,550 | $169,396 | 1.51% | A+ |
| 4BR | $2,910 | $197,403 | 1.47% | A |
| 5BR | $3,376 | $220,404 | 1.53% | A+ |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 60466, Park Forest, IL, reveals a nuanced investment landscape. To begin, let's annualize the Fair Market Rent (FMR) and the Zillow Observed Rent Index (ZORI) for a two-bedroom property. The FMR for a two-bedroom unit in FY 2024 is set at $1790 per month, translating into an annual rental income of $21,480. Meanwhile, the ZORI indicates a market rent of $1,807 per month, resulting in an annual rental income of $21,684.
Next, we compare these annual rental incomes to the median home value in the area, which stands at $149,942. For the FMR scenario, the implied gross yield is calculated as follows:
$21,480 / $149,942 = 0.1433 or 14.33%
In contrast, using the ZORI market rent, the gross yield is slightly higher:
$21,684 / $149,942 = 0.1446 or 14.46%
Given that the renter density in Park Forest is 33.7%, it suggests a moderate demand for rental properties. Additionally, the days on market (DOM) figure of 30 days indicates that properties are rented relatively quickly, which is positive for liquidity. However, the FMR rate is often lower than what landlords can charge in the open market, making the ZORI-based gross yield of 14.46% more realistic for potential investments.
The FMR gross yield of 14.33% is still attractive for conservative investors seeking stable returns, especially those interested in long-term investment strategies. However, for those willing to navigate the complexities of attracting and retaining tenants under the Section 8 program, the market rent gross yield offers a marginally better return.
In summary, while both the FMR and market rent provide solid gross yields, the slightly higher yield based on market rents is more reflective of the actual rental environment in Park Forest, IL. This insight should guide landlords and small-portfolio investors in their decision-making process regarding Section 8 participation in this ZIP code.
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.