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 | $2,240 |
| 1 Bedroom | $2,380 |
| 2 Bedrooms | $2,690 |
| 3 Bedrooms | $3,460 |
| 4 Bedrooms | $3,950 |
| 5 Bedrooms | $4,582 |
| 6 Bedrooms | $5,132 |
| 7 Bedrooms | $5,543 |
| 8 Bedrooms | $5,820 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,380 | $185,571 | 1.28% | A |
| 2BR | $2,690 | $300,587 | 0.89% | C |
| 3BR | $3,460 | $441,448 | 0.78% | D |
| 4BR | $3,950 | $720,074 | 0.55% | F |
| 5BR | $4,582 | $943,175 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 60563, located in Naperville, IL, presents a unique opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $2,410 for fiscal year 2024, exceeds the market rent, measured by Zillow's Rent Index (ZORI), which stands at $2,087. This means that the FMR is $323 higher than the ZORI, representing a 15.5% premium.
This gap makes Naperville an attractive market for voucher tenants. Given that the FMR is above the market rent, landlords can potentially earn a higher yield compared to renting out units at the prevailing market rates. For instance, a landlord could charge a tenant $2,410 per month, which is fully covered by the Section 8 voucher, while the average market rent is lower. This scenario benefits landlords who want to maximize their rental income without the hassle of finding tenants willing to pay above-market rates.
Naperville has a robust real estate market, with a median home value of $459,344 and a median household income of $109,783. The city also boasts a 45.3% rental rate, indicating a significant portion of the population relies on rental properties. Despite these favorable conditions, it's important to note that the cost of housing voucher tenants below open-market rates can be a challenge. Landlords must balance the security of guaranteed rental income against potential maintenance issues and the administrative burden associated with the Section 8 program.
However, the premium offered by the FMR suggests that the benefits outweigh the costs for many investors. With a 15.5% increase over the market rent, the financial incentive is clear. Moreover, the stability provided by the government-backed vouchers can offer peace of mind regarding consistent cash flow, which is crucial for maintaining a healthy investment portfolio.
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.