Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,500 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,310 |
| 4 Bedrooms | $2,640 |
| 5 Bedrooms | $3,062 |
| 6 Bedrooms | $3,429 |
| 7 Bedrooms | $3,703 |
| 8 Bedrooms | $3,888 |
U.S. Census Bureau data (2024)
ZIP 60510, located in Batavia, IL, within the Chicago-Joliet-Naperville, IL HUD Metro FMR Area, serves as a strong cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area is set at $1680 for fiscal year 2024, while the current market rent stands at $1359. This creates a positive spread of $321 per unit, ensuring that properties in this ZIP code will generate higher rental income when leased through the Section 8 program compared to the open market.
The median home value in ZIP 60510 is $453,672, indicating a relatively stable housing market. This stability is further reinforced by the low price-cut share of 0.1%, suggesting that property values are unlikely to fluctuate significantly, thus reducing the risk of capital depreciation. Additionally, the short Days on Market (DOM) of 4 days shows that homes are selling quickly, which can be an indicator of a robust local economy and demand for housing.
With a renter share of 22.3%, ZIP 60510 offers a moderate level of tenant availability, making it easier for landlords to fill vacancies. The median income of $121,622 suggests that residents have the financial means to cover their rent obligations, thereby reducing the risk of default and ensuring a steady stream of rental income.
In conclusion, ZIP 60510 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Its positive spread between FMR and market rent, combined with a stable housing market and financially secure tenants, makes it an ideal location for generating reliable and above-market rental income.
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.