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 | $1,510 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,330 |
| 4 Bedrooms | $2,660 |
| 5 Bedrooms | $3,086 |
| 6 Bedrooms | $3,456 |
| 7 Bedrooms | $3,732 |
| 8 Bedrooms | $3,919 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,810 | $320,201 | 0.57% | F |
| 3BR | $2,330 | $418,028 | 0.56% | F |
| 4BR | $2,660 | $614,333 | 0.43% | F |
| 5BR | $3,086 | $901,986 | 0.34% | F |
U.S. Census Bureau data (2024)
The ZIP code 60546, located in Riverside, IL, presents an interesting balance between yield and stability when considering investment opportunities through Section 8 housing. The Fair Market Rent (FMR) for ZIP 60546 in fiscal year 2024 is set at $1570, which is notably lower than the market rent of $1875. This discrepancy indicates a potential for higher yields when utilizing Section 8 vouchers compared to the local market rates.
To further analyze the yield, let's consider the median home value in ZIP 60546, which stands at $412,365. Given the FMR of $1570, a landlord can expect a rental income that is approximately 75% of the market rate, but still provides a significant cash flow relative to the property value. This suggests that while the yield might not be maximized, it remains competitive and potentially lucrative, especially considering the reduced vacancy risk associated with Section 8 tenants.
Moving onto stability, the data reveals that 23.3% of the residents in ZIP 60546 are renters. While this percentage is relatively low, it does not necessarily indicate instability, as Section 8 tenants typically have stable incomes and are less likely to default on rent payments. The average household income in the area is $113,533, which is above the national average and supports the notion that there is a solid economic foundation for maintaining rental stability.
The lack of data regarding the number of days on market (DOM) makes it challenging to assess the speed at which properties are rented out, but given the low percentage of renters and the presence of Section 8, we can infer that the rental market is not highly volatile. The combination of a decent yield and moderate stability places ZIP 60546 firmly in the category of a steady-cashflow zone rather than a high-yield/low-stability flip-style market. Investors should focus on long-term gains and steady income streams, leveraging the FMR to ensure profitability without sacrificing tenant quality or payment reliability.
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.