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 | $1,700 |
| 1 Bedroom | $1,810 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $3,000 |
| 5 Bedrooms | $3,480 |
| 6 Bedrooms | $3,898 |
| 7 Bedrooms | $4,210 |
| 8 Bedrooms | $4,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,810 | $158,862 | 1.14% | B |
| 2BR | $2,040 | $233,051 | 0.88% | C |
| 3BR | $2,620 | $421,589 | 0.62% | D |
| 4BR | $3,000 | $520,073 | 0.58% | F |
| 5BR | $3,480 | $653,780 | 0.53% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $2070 for ZIP 60517 (Woodridge, IL) can sufficiently cover the mortgage on a home valued at $405,871. According to recent data, the median home value in Woodridge is approximately $342,000. Assuming an average mortgage rate, a home in this price range would likely have a monthly mortgage payment around $1,800, based on typical financing terms. Therefore, the FMR of $2070 can indeed cover the mortgage payment, leaving a modest profit margin.
The investor might also doubt if there is sufficient renter demand at 30.7% of the population. While this percentage indicates a smaller proportion of renters compared to some areas, it still represents a significant number of potential tenants. Woodridge's population stands at 33,276, with 13,072 households. At a 30.7% rental rate, there are roughly 4,021 renter households. This suggests a reasonable demand for rental properties, particularly given the town's stable demographic profile and median age that aligns closely with the national average.
Another concern could be whether Section 8 vouchers will keep up with the market rents of $1,588. The FMR of $2070 provides a benchmark for what is considered affordable housing in the area. However, the specific data on how well Section 8 vouchers match these market rents is not available in the immediate search results. To fully address this concern, it would be necessary to review the local Housing Authority's policies and funding levels to ensure that vouchers can support the rental market without significant delays or shortfalls.
In summary, the FMR in Woodridge can cover the mortgage on a home priced at $405,871, and the rental market appears to have enough demand. For the voucher issue, further investigation into local Housing Authority practices is recommended to ensure long-term stability and profitability.
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.