Location: DeKalb County, 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 | $1,480 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $2,080 |
| 3 Bedrooms | $2,820 |
| 4 Bedrooms | $3,230 |
| 5 Bedrooms | $3,747 |
| 6 Bedrooms | $4,197 |
| 7 Bedrooms | $4,533 |
| 8 Bedrooms | $4,760 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,820 | $320,285 | 0.88% | C |
| 4BR | $3,230 | $384,910 | 0.84% | C |
U.S. Census Bureau data (2024)
The rent math in ZIP code 60520 does not favor landlords. The Fair Market Rent (FMR) set at $1,560 for the fiscal year 2024 is higher than the market rent reported by the Census ACS, which stands at $1,340. This discrepancy suggests that landlords may struggle to attract tenants willing to pay the FMR rate, given the lower prevailing market rates.
Regarding acquisition affordability, the median home value of $331,289 poses a significant challenge for potential investors. With limited data on days on market (DOM) and the percentage of homes requiring price cuts, it's difficult to assess the ease of acquiring properties. However, the high median home value indicates that purchasing properties will require a substantial investment, potentially limiting the pool of interested buyers.
Tenant demand in ZIP 60520 is modest but present. The area has a population of 2,979, with a renter share of 20.8%. While the number of renters is relatively small, the demand exists and can support a limited number of rental units. Landlords should focus on offering competitive rents and maintaining high-quality properties to attract tenants.
In summary, ZIP 60520 presents a challenging environment for landlords and small-portfolio investors. The rent math does not align favorably due to the gap between the FMR and market rent, indicating potential difficulties in setting rental prices that both comply with regulations and appeal to tenants. Acquisition costs are high, with no readily available data on how long homes stay on the market or the frequency of price reductions, making it harder to gauge the liquidity and bargaining power in the property market. Despite these challenges, there is a viable tenant base, though it is not large enough to offset the other issues. Investors must carefully consider their pricing strategies and be prepared for a competitive landscape before entering this market.
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.