Location: Kendall County, IL | Metro: Kendall 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 | $1,650 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $2,170 |
| 3 Bedrooms | $2,820 |
| 4 Bedrooms | $3,000 |
| 5 Bedrooms | $3,480 |
| 6 Bedrooms | $3,898 |
| 7 Bedrooms | $4,210 |
| 8 Bedrooms | $4,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,660 | $171,413 | 0.97% | C |
| 2BR | $2,170 | $262,090 | 0.83% | C |
| 3BR | $2,820 | $367,424 | 0.77% | D |
| 4BR | $3,000 | $461,694 | 0.65% | D |
| 5BR | $3,480 | $542,528 | 0.64% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 60560 (Yorkville, IL) reveals a stark contrast between government rental assistance rates and market rents. For a two-bedroom property, the Fair Market Rent (FMR) set by the government for FY 2024 is $1600 per month. This translates to an annualized income of $19,200. Given the median home value in the area is $400,172, the implied gross yield for a Section 8 property is approximately 4.8%. To calculate this, divide the annual income ($19,200) by the median home value ($400,172).
In contrast, the Zillow Observed Rent Index (ZORI) indicates that the market rent for a similar property is $2,253 per month, resulting in an annualized income of $27,036. When this figure is compared to the median home value, the implied gross yield jumps to about 6.8%. The calculation here is dividing the annual market rent ($27,036) by the median home value ($400,172).
Given the 16.9% renter density and the average days on market (DOM) of 20 days, it's important to consider the practical implications of these figures. A lower DOM suggests a high demand for rental properties, which could support higher market rents. However, the limited renter population means that landlords might face challenges in finding tenants willing to pay market rates.
The 4.8% gross yield from Section 8 is more stable but offers a lower return. Conversely, the 6.8% gross yield from market rents is potentially more profitable but comes with greater risk due to tenant availability and payment consistency. While market conditions favor higher yields, the reality of securing a reliable stream of Section 8 tenants makes the 4.8% gross yield a more grounded expectation for this ZIP code.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.