Section 8 Fair Market Rent (FMR) for ZIP 60556 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 60556

• Housing Authority Of The County Of DeKalb (Dekalb, IL) - 606 Section 8 vouchers

A skeptical investor considering ZIP 60556 might raise several concerns regarding the feasibility of investing in properties through the Section 8 program. Let's address these points directly with the available data.

• Will FMR $1130 (zip FY 2024) cover the mortgage on a $287,411 home? The Fair Market Rent (FMR) of $1130 for ZIP 60556 does not cover the full cost of a mortgage on a home priced at $287,411. To determine if it's sufficient, we need to consider the mortgage payment based on typical interest rates and loan terms. For instance, a 30-year fixed-rate mortgage at an average rate of 5% would result in monthly payments exceeding $1500, which is significantly higher than the $1130 FMR. This suggests that relying solely on FMR may not be financially viable without additional income sources or subsidies.
• Is there enough renter demand at 18.9%? At 18.9%, the percentage of renters in ZIP 60556 is relatively low, indicating a smaller pool of potential tenants compared to areas with higher rental rates. However, this does not necessarily mean there isn't enough demand. It's important to assess the local rental market dynamics, such as vacancy rates and tenant turnover. If the vacancy rate is low and tenant retention is high, then the 18.9% rental rate could still support a viable investment. Additionally, the demand for affordable housing under the Section 8 program can be strong despite the overall low rental rate.
• Will vouchers keep pace with $885 market rents? The voucher amount of $1130 is above the market rent of $885, which means that landlords participating in the Section 8 program in ZIP 60556 will receive more than the average market rent. This provides a buffer against any increases in maintenance costs or other expenses. However, the question remains whether the voucher amount will continue to match inflation and rising living costs over time. While historical trends show that voucher amounts have generally increased to meet inflation, there is no guarantee that they will consistently keep pace with all economic factors affecting ZIP 60556.

The data highlights both opportunities and challenges in investing in ZIP 60556 through the Section 8 program. Investors must carefully weigh these factors to make informed decisions.

Data Sources: FMR data from HUD (2027). 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.