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 | $1,620 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $1,940 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,850 |
| 5 Bedrooms | $3,306 |
| 6 Bedrooms | $3,703 |
| 7 Bedrooms | $3,999 |
| 8 Bedrooms | $4,199 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,940 | $348,809 | 0.56% | F |
| 3BR | $2,490 | $467,694 | 0.53% | F |
| 4BR | $2,850 | $687,687 | 0.41% | F |
| 5BR | $3,306 | $927,248 | 0.36% | F |
U.S. Census Bureau data (2024)
ZIP 60526, located in La Grange Park, IL, is an ideal cash-flow anchor for a Section 8 portfolio strategy. The Fair Market Rent (FMR) for FY 2024 is set at $1,660, which is slightly below the market rate of $1,750. This $90 difference per month represents a manageable spread that ensures steady, reliable income for landlords.
The median home value in this area is $480,094, indicating a stable housing market where property values are unlikely to experience drastic fluctuations. For landlords and small-portfolio investors, this stability translates into predictable cash flows, reducing the risk of financial instability due to sudden drops in rental income or property values.
A cash-flow anchor is crucial for any real estate investment portfolio, especially when dealing with Section 8 properties. It provides a foundation of consistent income that can offset potential losses from other investments or cover unexpected expenses. ZIP 60526 offers this consistency without the high-risk associated with areas where the FMR significantly exceeds the market rate, which could lead to vacancies and financial strain.
Furthermore, the area's median income of $120,308 supports the notion that tenants receiving Section 8 assistance can afford additional rent beyond the subsidy. This higher local income level means there is less likelihood of default or eviction, contributing to the reliability of the cash flow.
In conclusion, ZIP 60526 serves best as a cash-flow anchor within a Section 8 portfolio strategy. Its modest spread between FMR and market rates, combined with stable property values and a strong local economy, makes it a secure choice for generating dependable rental income.
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.