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 | $1,710 |
| 1 Bedroom | $1,810 |
| 2 Bedrooms | $2,050 |
| 3 Bedrooms | $2,640 |
| 4 Bedrooms | $3,010 |
| 5 Bedrooms | $3,492 |
| 6 Bedrooms | $3,911 |
| 7 Bedrooms | $4,224 |
| 8 Bedrooms | $4,435 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,810 | $163,828 | 1.1% | B |
| 2BR | $2,050 | $288,702 | 0.71% | D |
| 3BR | $2,640 | $493,853 | 0.53% | F |
| 4BR | $3,010 | $832,811 | 0.36% | F |
| 5BR | $3,492 | $1,124,040 | 0.31% | F |
U.S. Census Bureau data (2024)
The ZIP code 60525 in La Grange, Illinois, is situated in a suburban neighborhood characterized by a relatively affluent population of 31,324 residents. Only 19.9% of these residents are renters, indicating a predominantly owner-occupied community. The median household income in this area stands at a robust $116,918, which suggests a high standard of living. Additionally, the median home value is $485,365, reflecting the significant investment potential and property values in the region.
When it comes to rental economics, the Fair Market Rent (FMR) for ZIP 60525 as of the fiscal year 2024 is set at $1,650. This figure is notably lower than the market rent, which is measured at $2,488 using the Zillow Observed Rent Index (ZORI). This discrepancy highlights the opportunity for landlords and investors to capture a premium above the government-subsidized rates, particularly if they can offer properties that appeal to higher-income tenants outside of the voucher program.
Given the demographic and economic context, ZIP 60525 is more suitable for a hands-on value-add buyer rather than a hands-off voucher operator. The high median income and property values indicate a market where tenants might be willing to pay above the subsidized rate for quality housing. For those interested in maximizing returns, focusing on enhancing property amenities and condition could attract a broader range of tenants, including those who do not rely on vouchers. This strategy would likely yield better financial outcomes compared to solely participating in the Section 8 program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.