Section 8 Fair Market Rent (FMR) for ZIP 60557 - 2027

FY 2027 Fair Market Rent Rates

The analysis of the Section 8 cap rate for ZIP code 60557 reveals a challenging investment landscape due to the lack of specific data points. However, using the available information, we can derive a basic understanding of the potential gross yield.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 60557 for fiscal year 2026 is set at $1,130 annually. This figure represents the government's estimate of the maximum rent that a tenant participating in the Section 8 program would pay. To calculate the implied gross yield, we need the median home value, which is currently not provided. Without this critical piece of information, it's impossible to determine the exact percentage of the home value that the annualized FMR represents.

In a typical scenario where market rent data is available, we would compare the FMR to the market rent to understand how competitive the Section 8 rates are. Since the market rent for ZIP 60557 is listed as N/A, we cannot perform this comparison directly. However, it's important to note that if the FMR is significantly lower than the market rent, it could indicate a less attractive investment opportunity for landlords who might prefer to lease properties at market rates.

The implied gross yield for the Section 8 scenario would be calculated by dividing the annual rental income by the median home value. For instance, if the median home value were hypothetically $200,000, the gross yield would be 5.65% ($1,130 / $200,000 * 100). But since the median home value is also not provided, this calculation remains speculative.

The lack of detailed data such as the percentage of renter density and days on market (DOM) further complicates the analysis. These metrics help investors gauge the demand for rental properties and the likelihood of finding tenants. Given that these figures are also listed as N/A, it's difficult to provide a precise assessment of the realism of the gross yield scenarios derived from the FMR alone.

To conclude, while the FMR of $1,130 provides a starting point for calculating the gross yield, the absence of key data points such as median home value and market rent makes it challenging to draw definitive conclusions about the attractiveness of Section 8 investments in ZIP 60557. Landlords and small-portfolio investors should seek out additional local market data to inform their decision-making process.

Data Sources: FMR data from HUD (2027).

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.