Section 8 Fair Market Rent (FMR) for ZIP 60543 - 2027

Investment Score for ZIP 60543

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,590
1 Bedroom	$1,600
2 Bedrooms	$2,090
3 Bedrooms	$2,720
4 Bedrooms	$2,890
5 Bedrooms	$3,352
6 Bedrooms	$3,754
7 Bedrooms	$4,054
8 Bedrooms	$4,257

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,090	$288,668	0.72%	D
3BR	$2,720	$361,679	0.75%	D
4BR	$2,890	$490,793	0.59%	F
5BR	$3,352	$538,760	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60543 (Oswego, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 60543 is set by HUD for 2026 as follows: - 0BR: $1140 - 1BR: $1270 - 2BR: $1660 (which represents 16.7% of the median household income) - 3BR: $2280 - 4BR: $2360 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rental market in Oswego, IL, appears to be significantly higher than these FMRs. For instance, the Zillow median price for a 2BR property is $283,793, which translates into a monthly mortgage payment of approximately $1,400 assuming a 30-year fixed-rate mortgage at a 4% interest rate. This means that the actual rental rates in the area are likely to be much higher than the FMRs. Given that the FMR for a 2BR unit is $1660, it is clear that many voucher holders will face significant constraints in finding suitable housing. The occupancy rate of 98.7% suggests that there is little vacancy, making it even harder for voucher holders to find units within their budget. #### Affordability & Renter Profile With a median household income of $119,371, the majority of residents in Oswego, IL, are relatively affluent. Only 13.4% of the population are renters, indicating that this is primarily a homeowner-dominated market. The high median income and low percentage of renters suggest that those who do rent are likely to be financially stable and able to afford higher rents. The affordability of housing for renters, particularly those relying on Section 8 vouchers, is challenging. The FMR for a 2BR unit is only 16.7% of the median household income, which is quite low compared to the actual rental prices. This implies that the market is tight, and landlords may have less incentive to accept Section 8 vouchers due to the high demand for rentals and the potential for higher rents. #### Investor Angle From an investor perspective, the ZIP code 60543 presents both opportunities and challenges. The high median home value and limited rental supply suggest that there could be strong demand for rental properties. However, the price-to-FMR ratio of 14.2x indicates that the actual rental prices are far above the FMRs set by HUD. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical mortgage payments and operating costs. Assuming a 2BR property priced at $283,793, the monthly mortgage payment would be around $1,400. Adding typical operating costs such as property taxes, insurance, maintenance, and utilities, the total monthly expenses could easily exceed $1,660, the FMR for a 2BR unit. Therefore, accepting Section 8 vouchers at the FMR would likely result in negative cash flow for most investors. The investment grade of this ZIP code for Section 8-focused investors is low due to the high price-to-FMR ratio and the tight rental market. Landlords who accept Section 8 vouchers might struggle to cover their costs and maintain profitability. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given that the FMR for larger units (3BR and 4BR) is higher, investors might consider focusing on properties with three or more bedrooms. For example, a 3BR unit has an FMR of $2280, which is closer to the actual rental prices in the area. This could help mitigate the risk of negative cash flow. 2. **Consider Alternative Rental Markets**: Investors should also explore alternative rental markets within Kendall County or nearby areas where the price-to-FMR ratio is lower. This could provide better opportunities for positive cash flow while still serving the needs of voucher holders. 3. **Engage with Local Housing Authorities**: To understand the local dynamics and potentially negotiate higher payment standards, investors should engage with the local housing authorities. They can provide insights into the availability of vouchers and any adjustments to the FMR that might be made to accommodate the local market conditions. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 60543 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow when accepting vouchers. Instead, investors should look for other ZIP codes within Kendall County or neighboring areas where the rental market is more aligned with HUD’s FMR guidelines.

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.