Location: La Salle County, IL | Metro: DeKalb County, 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 | $1,280 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,540 |
| 4 Bedrooms | $2,630 |
| 5 Bedrooms | $3,051 |
| 6 Bedrooms | $3,417 |
| 7 Bedrooms | $3,690 |
| 8 Bedrooms | $3,875 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,850 | $227,352 | 0.81% | C |
| 3BR | $2,540 | $324,484 | 0.78% | D |
| 4BR | $2,630 | $381,246 | 0.69% | D |
| 5BR | $3,051 | $418,644 | 0.73% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking into Sandwich, IL (ZIP 60548), might have several valid concerns regarding the viability of renting properties through the Section 8 program. Here's an analysis addressing those specific objections.
Objection 1: Will Fair Market Rent (FMR) of $1550 for fiscal year 2024 cover the mortgage on a $319,296 home?
The FMR of $1550 is indeed lower than what might be required to cover the mortgage payments on a $319,296 home. To provide a clearer picture, consider that a typical mortgage rate could be around 5%. On such a property, a monthly mortgage payment could range between $1500 to $1800, depending on down payment and term length. Thus, relying solely on FMR would likely not fully cover the mortgage payments without additional income sources or equity contributions.
Objection 2: Is there enough renter demand at 17.9%?
The 17.9% of the population renting indicates a moderate level of demand in Sandwich, IL. However, this percentage alone does not fully capture the dynamics of rental demand. It's crucial to look at the number of renters who qualify for the Section 8 program and the overall vacancy rates. While the data provided does not give us these specifics, it's important to note that a higher percentage of renters can sometimes correlate with higher competition among landlords, which might affect occupancy rates and thus income stability.
Objection 3: Will vouchers keep pace with $1,045 market rents?
The average market rent of $1,045 in Sandwich, IL, is slightly above the FMR but within a reasonable margin. The U.S. Department of Housing and Urban Development (HUD) adjusts FMR annually based on housing costs and economic conditions. If historical trends hold, the FMR should increase to align with market rents over time. However, the pace of adjustment can vary, and it's essential for investors to monitor local market conditions and HUD announcements closely to ensure they remain competitive and financially viable.
In conclusion, while the data shows some challenges, particularly with covering mortgage payments solely through FMR, Sandwich, IL, still presents opportunities for investors willing to navigate the complexities of the rental market. Careful consideration of additional income sources, qualification criteria for tenants, and ongoing monitoring of FMR adjustments will be key to success.
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.