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 | $1,920 |
| 1 Bedroom | $2,040 |
| 2 Bedrooms | $2,300 |
| 3 Bedrooms | $2,960 |
| 4 Bedrooms | $3,380 |
| 5 Bedrooms | $3,921 |
| 6 Bedrooms | $4,392 |
| 7 Bedrooms | $4,743 |
| 8 Bedrooms | $4,980 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,300 | $315,740 | 0.73% | D |
| 3BR | $2,960 | $355,826 | 0.83% | C |
| 4BR | $3,380 | $508,061 | 0.67% | D |
| 5BR | $3,921 | $582,685 | 0.67% | D |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 60542 (North Aurora, IL) for Section 8 investment, follow this decision tree:
1) Does FMR $1,850 (zip FY 2024) clear debt service on a $394,241 property?
No. The Fair Market Rent (FMR) of $1,850 is unlikely to cover the debt service on a property valued at $394,241. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. For a property of this value, these costs would likely exceed the FMR amount.
2) Is market rent $2,363 (ZORI) above, at, or below FMR?
The market rent of $2,363 (ZORI) is above the FMR of $1,850. This indicates that the rental market in North Aurora, IL, offers higher returns compared to what is covered by Section 8 vouchers. However, this does not directly answer the suitability for Section 8 investment.
3) Are 27.2% renters + N/A-day days on market (DOM) enough demand?
It depends. With 27.2% of residents being renters, there is a decent level of rental demand. However, the lack of data on the average days on market (DOM) makes it difficult to assess how quickly properties can be rented out. A low DOM would suggest strong demand, while a high DOM could indicate challenges in finding tenants.
If the FMR does not clear debt service, then the answer is no regardless of market rent and demand conditions. Section 8 investments require that the rent covers all operational costs to ensure profitability. Since the FMR of $1,850 is insufficient to meet the expected debt service on a property priced at $394,241, it is not advisable to invest in this area solely for Section 8 tenants.
If you still consider investing in this area but aim for a broader tenant pool, the market rent of $2,363 suggests potential for higher returns. However, the success will depend on the ability to attract and retain tenants, which is influenced by the rental demand and the time it takes to rent out a property (DOM).
In conclusion, for pure Section 8 investment, the answer is no due to the insufficiency of FMR to cover debt service. For mixed-use investment targeting both Section 8 and market-rate tenants, the decision hinges on the rental demand and the speed at which properties can be leased, as indicated by DOM data, which is currently unavailable.
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.