Section 8 Fair Market Rent (FMR) for ZIP 60564 - 2027

Investment Score for ZIP 60564

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,520
1 Bedroom	$2,670
2 Bedrooms	$3,020
3 Bedrooms	$3,880
4 Bedrooms	$4,440
5 Bedrooms	$5,150
6 Bedrooms	$5,768
7 Bedrooms	$6,229
8 Bedrooms	$6,540

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$3,020	$353,756	0.85%	C
3BR	$3,880	$462,560	0.84%	C
4BR	$4,440	$773,425	0.57%	F
5BR	$5,150	$926,009	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60564 (Naperville, IL) #### Section 8 Voucher Dynamics In ZIP code 60564, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2,670 per month for 2026. This represents approximately 17.7% of the median household income of $181,382, which is relatively affordable for the average resident. However, the actual rental market in Naperville is significantly higher. According to Zillow, the median price for a two-bedroom home is $347,578, which translates into a monthly rent of around $1,448 if we assume a typical mortgage payment based on a 4.5% interest rate over 30 years. The price-to-FMR ratio is 10.8x, indicating that the actual market rents are much higher than the FMR. This discrepancy creates significant constraints for Section 8 voucher holders. They would find it challenging to locate properties that meet both the size and cost requirements. For example, a three-bedroom apartment with an FMR of $3,440 would be nearly impossible to find at this price point given the local market dynamics. #### Affordability & Renter Profile The population of Naperville in ZIP 60564 is 47,016, with only 11.9% of residents being renters. This low percentage suggests a predominantly owner-occupied market, making it a tight rental market. The occupancy rate of 97.3% further supports this conclusion, as it indicates that almost all available units are occupied. Given the high median household income, the typical renter profile likely includes individuals or families who can afford higher rents but may still be seeking more affordable options due to financial constraints or personal preferences. The limited supply of rental units means that landlords have a strong negotiating position, leading to higher rents. This makes it particularly difficult for those relying on Section 8 vouchers, as the FMRs do not reflect the true cost of renting in Naperville. The median household income is quite high, so the majority of residents can afford to pay market rates, leaving fewer opportunities for subsidized housing. #### Investor Angle From an investor perspective, the ZIP code 60564 presents a mixed picture. While the market rents are high, the FMRs are significantly lower. An investor looking to acquire a two-bedroom property at the FMR of $2,670 would face challenges in finding such properties. The actual market rent for a two-bedroom unit is likely closer to $1,448 per month, based on the median home price of $347,578. Given the high price-to-FMR ratio of 10.8x, it is unlikely that an investor would find cash-flow positive properties at the FMR level. Instead, they would need to look at properties that can command market rents, which are substantially higher. This makes the area less attractive for investors focused solely on Section 8 vouchers unless they can find properties that are undervalued or willing to accept lower rents. #### Specific Actionable Insights 1. **Target Undervalued Properties**: Investors should focus on identifying undervalued properties that could potentially be rented out at or near the FMR. This might involve looking at older buildings or units that require some level of renovation to bring them up to market standards without significantly increasing the rent. 2. **Consider Multi-Family Developments**: Given the tight rental market, multi-family developments could offer better opportunities. A development with multiple units could spread the risk and provide a mix of sizes and price points, including some that might be eligible for Section 8 vouchers. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help in understanding the demand for Section 8 vouchers and potentially securing tenants through these programs. This could also provide insights into any upcoming changes in FMRs or other subsidies that might affect the market. #### Bottom Line For investors focused on Section 8 vouchers, the recommendation for ZIP code 60564 is to **skip** this market. The high price-to-FMR ratio and tight rental market make it difficult to find properties that can be rented out at the FMR levels. Instead, investors should consider markets where the FMRs are closer to actual market rents, providing a better chance for cash-flow positive investments. Naperville's high median household income and limited rental supply suggest that the area is more suited for owner-occupied homes or market-rate rentals rather than subsidized housing.

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.