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 | $1,950 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,340 |
| 3 Bedrooms | $3,010 |
| 4 Bedrooms | $3,440 |
| 5 Bedrooms | $3,990 |
| 6 Bedrooms | $4,469 |
| 7 Bedrooms | $4,827 |
| 8 Bedrooms | $5,068 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,070 | $168,979 | 1.23% | A |
| 2BR | $2,340 | $261,178 | 0.9% | C |
| 3BR | $3,010 | $514,242 | 0.59% | F |
| 4BR | $3,440 | $814,516 | 0.42% | F |
| 5BR | $3,990 | $1,157,357 | 0.34% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 60515, located in Downers Grove, IL, reveals a unique balance between yield and stability that makes it an interesting market for real estate investment. The Fair Market Rent (FMR) for a four-bedroom property in this ZIP code for fiscal year 2024 is set at $1,990, which is significantly lower than the market rent of $2,423. This gap indicates a potential for higher yields if properties can be rented at market rates.
To understand the yield potential, consider the median home value in ZIP 60515, which stands at $497,640. If we assume a conservative rental yield calculation using the FMR, an investor could expect a monthly cash flow of approximately $433 ($2,423 - $1,990), assuming they can rent their property at the market rate. This translates into an annual cash flow of about $5,196, providing a modest yield percentage relative to the home value.
Moving onto stability, ZIP 60515 shows a mixed profile. With only 24.2% of residents being renters, the area leans towards a homeownership-oriented community, which generally provides greater stability in terms of demand for rental properties. However, the average days on market (DOM) for rentals is 16 days, suggesting that rental properties are typically occupied quickly once they become available. This quick turnover can be beneficial for landlords but also introduces some volatility, as rapid changes in occupancy can affect cash flow consistency.
The median household income in ZIP 60515 is $123,197, which is quite robust. This high income level supports the ability of tenants to pay market rents, thereby reducing the risk of default and enhancing overall stability. It also suggests a strong local economy capable of sustaining rental demand even during downturns.
Based on these figures, ZIP 60515 is best classified as a steady-cashflow zone with moderate yield potential. While the market offers opportunities for higher returns through renting above the FMR, the relatively low percentage of renters and high median income indicate a stable environment where demand for rental units is less likely to fluctuate dramatically. This combination makes it a suitable market for investors seeking consistent cash flows without the high risks associated with more volatile markets.
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.