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 | $1,130 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,130 | $319,097 | 0.67% | D |
| 4BR | $2,550 | $381,466 | 0.67% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 60552 reveals some key insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for FY 2024 is set at $1720 per month. This translates into an annual rental income of $20,640. When compared to the median home value of $321,223, the implied gross yield for a Section 8 property would be approximately 6.43%. This calculation is based on the assumption that the property's value is equivalent to the investment cost.
In contrast, the market rent for a similar 2-bedroom apartment in ZIP 60552 is reported at $1,388 per month according to the Census ACS data. Annualizing this figure gives us a market rent income of $16,656 per year. Given the same median home value, the implied gross yield under market conditions is about 5.19%.
The 15.4% renter density suggests that while there is a significant portion of renters in the area, it also indicates that a majority of the population might prefer homeownership. This factor should be considered when evaluating the potential demand for rental properties, including those participating in the Section 8 program. However, the lack of specific data regarding the days on market (DOM) makes it challenging to assess the speed at which properties can be leased, particularly under the Section 8 program.
Basing our assessment on the available data, the Section 8 scenario offers a higher gross yield at 6.43% compared to the market rent scenario at 5.19%. For investors looking to maximize their returns, the Section 8 program presents a more attractive option in terms of gross yield. However, it is important to note that while the gross yield is higher, the net operating income (NOI) may vary depending on factors such as maintenance costs, vacancy rates, and management fees. Landlords should carefully consider these additional factors before deciding whether to participate in the Section 8 program or to pursue market rents.
The higher gross yield in the Section 8 scenario is primarily due to the government-set rental rates being above the current market rates. This discrepancy can be advantageous for landlords seeking stable, long-term rental income, though they must weigh this against the administrative requirements and potential limitations associated with the Section 8 program.
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.