Section 8 Fair Market Rent (FMR) for ZIP 60504 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 60504

• DuPage Housing Authority (Wheaton, IL) - 3,360 Section 8 vouchers
• Housing Authority of the City of Aurora (Aurora, IL) - 1,499 Section 8 vouchers
• Housing Authority of Elgin (Elgin, IL) - 1,164 Section 8 vouchers
• Kendall Housing Authority (Yorkville, IL) - 198 Section 8 vouchers

To determine if a landlord should invest in ZIP 60504 (Aurora, IL) for Section 8 properties, follow these steps:

Step 1: Can the Fair Market Rent (FMR) of $2400 cover the debt service on a property valued at $348,856?

• Yes: If the landlord can secure a mortgage rate that allows the $2400 monthly rent to cover all associated costs including principal, interest, taxes, and insurance, then the investment is financially viable based on FMR alone.
• No: If the $2400 FMR does not sufficiently cover the debt service for a $348,856 property, the landlord should consider either lowering their price point or seeking additional income sources.
• It Depends: The outcome hinges on the specific terms of the mortgage, such as the interest rate and loan term. A lower interest rate or a longer loan term might make the investment feasible even with the current FMR.

Step 2: How does the Zillow Observed Rental Index (ZORI) of $2,132 compare to the FMR?

• Above: If the ZORI were higher than the FMR, it would indicate a strong rental market where landlords could potentially charge more than the FMR, thus making the investment more attractive. However, given the ZORI is below the FMR, this scenario does not apply.
• At: If the ZORI matched the FMR, the landlord would be able to set rents at the FMR without losing out on potential market rates. This scenario also does not apply.
• Below: With the ZORI at $2,132, which is below the FMR of $2400, landlords might find it challenging to attract non-Section 8 tenants willing to pay the FMR. This suggests a need for careful consideration of the property's location and condition to justify the higher rent.

Step 3: Is there sufficient demand with 41.0% of residents being renters and an average Days on Market (DOM) of 18 days?

• Yes: The combination of a significant portion of renters (41.0%) and a relatively quick turnover time (18 DOM) indicates a robust demand for rental properties in Aurora, IL. This supports the viability of investing in Section 8 properties.
• No: Not applicable based on the provided data.
• It Depends: While the 41.0% of renters and 18-day DOM suggest good demand, the landlord must still ensure that the property meets Section 8 standards and that the area is desirable enough for tenants to choose over other options. Additionally, the landlord should assess the competition and the overall economic climate of the area.

In summary, if the FMR of $2400 can cover the debt service on a $348,856 property, and the landlord is prepared to manage the gap between ZORI and FMR, the high percentage of renters and quick DOM suggest a positive outlook for Section 8 investments in ZIP 60504.

Data Sources: FMR data from HUD (2027). 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.