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 | $1,430 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,510 | $173,943 | 0.87% | C |
| 2BR | $1,710 | $314,634 | 0.54% | F |
| 3BR | $2,200 | $549,902 | 0.4% | F |
| 4BR | $2,510 | $980,698 | 0.26% | F |
| 5BR | $2,912 | $1,666,421 | 0.17% | F |
U.S. Census Bureau data (2024)
The ZIP code 60514, located in Clarendon Hills, IL, presents an interesting mix of yield and stability for real-estate investors. With a Fair Market Rent (FMR) of $1,460 for the fiscal year 2024, it falls significantly below the local market rent of $2,007. This gap suggests a potential for higher yields if the property can be rented out at market rates. However, the median home value stands at $666,151, which is considerably high and implies a substantial initial investment.
On the stability axis, the data points towards a relatively secure market. The percentage of renters in the area is 22.3%, indicating that a significant portion of the population prefers homeownership, which could stabilize the rental market over time. Additionally, the median household income is $118,716, suggesting that tenants are likely to have the financial means to meet their rental obligations.
To classify the market, we must consider both yield and stability. The high disparity between the FMR and market rent points towards a potentially high-yield market, where investors can capitalize on the difference to generate above-average returns. However, the low percentage of renters and the lack of data on days on market (DOM) suggest a market that leans towards stability rather than volatility. Given these factors, ZIP 60514 is best classified as a steady-cashflow zone. Investors here should expect reasonable returns driven by the ability to rent properties above the FMR, while also benefiting from a stable tenant base due to the strong local economy and high median income levels.
Investors looking to maximize yields might find this area somewhat challenging due to the high cost of entry, but those seeking a balance between decent returns and low risk will find ZIP 60514 attractive. The combination of a moderate yield opportunity and a stable tenant environment makes it a suitable choice for landlords and small-portfolio investors who prioritize consistent cash flow over speculative high-yield investments.
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.