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 | $2,090 |
| 1 Bedroom | $2,220 |
| 2 Bedrooms | $2,510 |
| 3 Bedrooms | $3,230 |
| 4 Bedrooms | $3,690 |
| 5 Bedrooms | $4,280 |
| 6 Bedrooms | $4,794 |
| 7 Bedrooms | $5,178 |
| 8 Bedrooms | $5,437 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,510 | $301,337 | 0.83% | C |
| 3BR | $3,230 | $363,082 | 0.89% | C |
| 4BR | $3,690 | $496,904 | 0.74% | D |
| 5BR | $4,280 | $673,154 | 0.64% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $2,120 for ZIP 60555 (Warrenville, IL) in fiscal year 2024 can cover the mortgage on a home priced at $349,932. To address this, consider the median family income of $100,388. At an average mortgage rate of approximately 5%, the monthly payment on a $349,932 home would be around $1,875. This means that the FMR of $2,120 could indeed cover the mortgage, leaving a buffer of about $245 per month.
Another concern might be the level of renter demand, given that only 25.8% of the housing units are rented. However, this percentage does not fully capture the rental market dynamics. A closer look reveals that the rental vacancy rate is relatively low, indicating a steady demand for rental properties. The median rent in the area is $2,750, which is higher than the FMR, suggesting that renters are willing to pay more than the minimum required by the government.
The final objection is whether housing vouchers will keep pace with market rents of $2,240. While the data does not provide a direct comparison between voucher amounts and market rents, it's important to note that voucher holders often face challenges finding suitable housing. The fact that market rents are higher than the FMR indicates that vouchers may struggle to cover the full cost of renting in ZIP 60555. Landlords should be prepared to negotiate or consider offering additional amenities to attract voucher holders.
In summary, the FMR of $2,120 can cover the mortgage on a $349,932 home, with a slight buffer. Despite the seemingly low rental demand, the low vacancy rate and high median rent suggest a healthy market. However, housing vouchers may not fully cover the $2,240 market rents, requiring landlords to adapt their strategies to accommodate voucher holders effectively.
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.