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 | $2,280 |
| 1 Bedroom | $2,420 |
| 2 Bedrooms | $2,730 |
| 3 Bedrooms | $3,510 |
| 4 Bedrooms | $4,010 |
| 5 Bedrooms | $4,652 |
| 6 Bedrooms | $5,210 |
| 7 Bedrooms | $5,627 |
| 8 Bedrooms | $5,908 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,730 | $321,939 | 0.85% | C |
| 3BR | $3,510 | $383,482 | 0.92% | C |
| 4BR | $4,010 | $617,330 | 0.65% | D |
| 5BR | $4,652 | $757,592 | 0.61% | D |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 60502 (Aurora, IL) for Section 8 properties must evaluate several factors. The first step is to determine if the Fair Market Rent (FMR) of $2340 can cover the debt service on a property valued at $416,405.
If the answer is yes: The FMR of $2340 is sufficient to clear the debt service on a property of that value. This means the rental income generated from a Section 8 tenant would be enough to meet financial obligations. However, the next question is whether the market rent, which is $2,525 (ZORI), is above, at, or below the FMR.
If market rent is above the FMR: The ZORI of $2,525 indicates that the market rent exceeds the FMR. This suggests that non-Section 8 tenants could potentially pay more than what is allowed under the Section 8 program. Therefore, it might be more profitable to seek market-rate tenants rather than rely solely on Section 8 funding.
If market rent is at or below the FMR: The ZORI of $2,525 being close to or lower than the FMR implies that there's little to no premium for market-rate rents. In this scenario, Section 8 could be a viable option since it matches the market conditions closely.
The third factor to consider is the demand for rentals in the area. With 21.4% of residents being renters and an average Days on Market (DOM) of 9 days, the market shows moderate demand. This percentage of renters suggests a reasonable pool of potential tenants, while the short DOM indicates that units are typically occupied quickly once listed.
If the demand is high enough: Given the 9-day DOM, it is clear that there is enough demand to fill vacancies promptly. This is a positive sign for landlords looking to maintain steady occupancy rates.
If demand is low: If the DOM were longer, indicating slower leasing, then it would depend on whether the landlord can attract Section 8 tenants quickly enough to offset the risk of vacancy. However, with the current data showing a DOM of only 9 days, this branch is not applicable.
In conclusion, if the FMR of $2340 clears the debt service on a $416,405 property and the market rent is at or below this figure, then investing in ZIP 60502 for Section 8 properties is advisable. The combination of moderate renter population and quick leasing times supports a stable investment environment.
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.