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 | $2,240 |
| 1 Bedroom | $2,370 |
| 2 Bedrooms | $2,680 |
| 3 Bedrooms | $3,450 |
| 4 Bedrooms | $3,940 |
| 5 Bedrooms | $4,570 |
| 6 Bedrooms | $5,118 |
| 7 Bedrooms | $5,527 |
| 8 Bedrooms | $5,803 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,680 | $149,468 | 1.79% | A+ |
| 3BR | $3,450 | $221,330 | 1.56% | A+ |
| 4BR | $3,940 | $263,196 | 1.5% | A |
| 5BR | $4,570 | $300,036 | 1.52% | A+ |
U.S. Census Bureau data (2024)
In ZIP code 60473 located in South Holland, IL, there are several factors that could present challenges for a first-time Section 8 landlord. The primary concern is tenant turnover, which can be higher due to the disparity between the market rent of $1,856 and the Fair Market Rent (FMR) of $2,210 for FY 2024. This gap suggests that tenants might seek properties that offer closer alignment to the FMR, leading to increased churn.
Vacancy exposure is another significant risk, considering the average Days on Market (DOM) of 72 days. This period indicates a relatively long time frame for finding a new tenant, during which the property remains unoccupied and generates no rental income. Landlords must be prepared to cover mortgage payments and other expenses during these vacancy periods.
The deferred-maintenance exposure is also noteworthy. With a typical home value of $222,993 and a median income of $85,659, residents may struggle to afford necessary repairs and maintenance, particularly if they are already stretched by housing costs. This could lead to higher maintenance demands on the landlord, impacting both time and finances.
However, these risks are balanced by the high renter share in the area, which stands at 17.1%. High renter density typically translates into a greater demand for rental properties, including those that accept Section 8 vouchers. This demand can help mitigate the risk of prolonged vacancies and ensure a steady stream of potential tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.