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 | $1,190 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $129,807 | 1.1% | B |
| 3BR | $1,840 | $180,293 | 1.02% | B |
| 4BR | $2,100 | $235,326 | 0.89% | C |
U.S. Census Bureau data (2024)
The ZIP code 60475, located in Steger, Illinois, within Cook County, stands out due to its unique demographic and economic characteristics. With a population of 10,035, it has a rental rate of 35.1%, which is slightly above the national average. The median household income in this area is $67,487, reflecting a middle-class community. The median home value is notably higher at $167,640, indicating that homeownership is relatively expensive compared to the income levels.
In terms of voucher economics, the Fair Market Rent (FMR) for ZIP 60475 for fiscal year 2024 is set at $1,310. This is significantly higher than the actual market rent of $1,072 reported by the Census Bureau's American Community Survey (ACS). Landlords who participate in the Section 8 program can expect to receive a subsidy that covers the difference between the market rent and the FMR, thus ensuring a steady income stream that aligns with the higher FMR rates.
The data suggests that ZIP 60475 presents a stable environment for both landlords and small-portfolio investors. The high median home value indicates a strong property market, while the disparity between the FMR and market rent provides an opportunity for landlords to secure higher rental incomes through the Section 8 program. This stability is further reinforced by the moderate median income level, which supports a consistent demand for housing and rental units. Given these factors, it is reasonable to conclude that the ZIP code is currently in a stable phase, offering reliable returns for those involved in the real estate sector.
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.