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 | $2,400 |
| 1 Bedroom | $2,550 |
| 2 Bedrooms | $2,880 |
| 3 Bedrooms | $3,700 |
| 4 Bedrooms | $4,230 |
| 5 Bedrooms | $4,907 |
| 6 Bedrooms | $5,496 |
| 7 Bedrooms | $5,936 |
| 8 Bedrooms | $6,233 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,880 | $329,085 | 0.88% | C |
| 3BR | $3,700 | $466,614 | 0.79% | D |
| 4BR | $4,230 | $608,973 | 0.69% | D |
| 5BR | $4,907 | $781,944 | 0.63% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,950 for ZIP 60467 in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $465,560. To determine this, we must consider the typical mortgage rate and terms. Assuming a 30-year fixed-rate mortgage with an interest rate of 4.5%, the monthly principal and interest payment for a $465,560 home would be approximately $2,300. Thus, the FMR does not fully cover the mortgage cost, leaving a shortfall of $350 per month.
The second objection could be whether the renter demand is sufficient at 6.6% of the total properties. The median property value in ZIP 60467 is $411,700, and since the market has increased by 22.9% since 2021, it suggests a growing market. However, with only 6.6% of properties rented, it indicates a relatively low rental demand compared to other areas. This could mean that finding tenants might be challenging, especially if the rental market remains stagnant.
Another concern is whether Housing Choice Vouchers will keep pace with market rents of $2,149. According to the data, there is no specific information on voucher amounts for ZIP 60467. Typically, voucher amounts are adjusted annually based on the area's FMR, but they rarely match the full market rent. Investors should anticipate that voucher recipients might need to contribute additional funds to cover the difference between the voucher amount and the market rent.
In summary, while ZIP 60467 presents opportunities in real estate investment, particularly with rising property values, there are notable challenges such as the FMR not covering mortgage costs, low renter demand, and uncertainty regarding voucher amounts. These factors should be carefully considered when evaluating the viability of investing in this area.
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.