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 | $2,230 |
| 1 Bedroom | $2,360 |
| 2 Bedrooms | $2,670 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $3,920 |
| 5 Bedrooms | $4,547 |
| 6 Bedrooms | $5,093 |
| 7 Bedrooms | $5,500 |
| 8 Bedrooms | $5,775 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,670 | $426,162 | 0.63% | D |
| 3BR | $3,430 | $777,122 | 0.44% | F |
| 4BR | $3,920 | $1,268,863 | 0.31% | F |
| 5BR | $4,547 | $2,022,763 | 0.22% | F |
U.S. Census Bureau data (2024)
The median household income in Hinsdale, Illinois (ZIP 60521) stands at $249,200, positioning it among higher-income areas. At a market rate of $1,955 per month, renting becomes a significant expense but remains feasible for most residents given their income levels. However, the comparison to the Fair Market Rent (FMR) standard set by the government for Housing Choice Vouchers paints a different picture. The FMR for the area in fiscal year 2024 is $2,570, which is notably higher than the actual market rate.
This discrepancy means that tenants using vouchers have access to a broader range of rental properties compared to those paying out-of-pocket. While the median income suggests that households can cover the $1,955 market rate, the higher FMR indicates that landlords could potentially receive more for their units if they accept voucher holders. This creates an interesting dynamic where landlords might face less competition from other property owners when accepting vouchers, as not all landlords opt into the program due to administrative complexities and other considerations.
The affordability gap is further highlighted by the relatively low percentage of renters—only 11.6% of the total population of 18,056. This suggests that the majority of the population in Hinsdale owns their homes, indicating a smaller pool of potential renters. For landlords, this implies that attracting tenants who can pay the market rate or use vouchers effectively could be challenging without offering competitive amenities or pricing.
For landlords considering whether to accept Housing Choice Vouchers or focus on cash-paying tenants, the key takeaway is that while voucher payments are higher, the decision should also factor in the administrative burden and the size of the local rental market. Given the high median income and the limited number of renters, landlords who strategically position their properties to appeal to both voucher users and cash-paying tenants will likely find success in this competitive environment. They should weigh the benefits of higher rental payments against the convenience of having fewer tenants to choose from.
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.