Section 8 Fair Market Rent (FMR) for ZIP 60565 - 2027

Investment Score for ZIP 60565

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	$2,080
1 Bedroom	$2,200
2 Bedrooms	$2,490
3 Bedrooms	$3,200
4 Bedrooms	$3,660
5 Bedrooms	$4,246
6 Bedrooms	$4,756
7 Bedrooms	$5,136
8 Bedrooms	$5,393

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,490	$295,634	0.84%	C
3BR	$3,200	$458,415	0.7%	D
4BR	$3,660	$715,965	0.51%	F
5BR	$4,246	$874,458	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60565 (Naperville, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 60565 in Naperville, IL, as of 2026, is set at $2270 for a two-bedroom unit. This amount represents 16.6% of the median household income in the area, which is $164,447. However, the actual rental market is significantly higher. The Zillow median price for a two-bedroom home in this ZIP code is $294,457, which translates into a price-to-FMR ratio of 10.8x. This means that the actual rent for a two-bedroom unit could be around $24,000 annually, far exceeding the FMR. Consequently, Section 8 voucher holders face significant constraints in finding affordable housing within the ZIP code. They would need to find units that are priced below or at the FMR level, which is challenging given the high cost of living in Naperville. #### Affordability & Renter Profile Naperville is known for its affluent population, with a median household income of $164,447. Only 11.6% of the population are renters, indicating a relatively low demand for rental properties compared to owner-occupied homes. The occupancy rate of 96.7% suggests that the rental market is quite tight, with few vacant units available. Given the high median income and low percentage of renters, it is likely that those who do rent are either young professionals, students, or families who have chosen to rent due to lifestyle preferences or financial considerations. For Section 8 voucher holders, the market is particularly challenging because the majority of available rentals are well above the FMR levels, making it difficult to find suitable housing options. #### Investor Angle From an investor's perspective, the ZIP code 60565 presents a mixed picture. While the overall rental market is strong and has high occupancy rates, the FMR levels are much lower than the actual rental prices. To determine if this ZIP code is cash-flow positive at FMR, we must consider the typical rental prices and the FMR. If an investor were to purchase a two-bedroom unit at the Zillow median price of $294,457 and rent it out at the FMR of $2270 per month, the annual rental income would be $27,240. This is significantly less than the potential rental income at market rates, which could be closer to $24,000 annually based on the price-to-FMR ratio. Therefore, the cash flow at FMR would be negative unless the investor can secure a tenant willing to pay the FMR despite the market conditions. In terms of investment grade, the high median income and low vacancy rates suggest a stable and desirable location. However, the challenge lies in the affordability gap between FMR and actual rents. Investors focusing on Section 8 vouchers would need to carefully evaluate their ability to attract and retain tenants under these constraints. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Given the high price-to-FMR ratio, investors should focus on acquiring properties that are priced closer to the FMR levels. For instance, a one-bedroom unit with an FMR of $2010 might be more feasible for Section 8 voucher holders. This would require identifying and purchasing units that are below the median market price, potentially in older or less desirable neighborhoods. 2. **Consider Multi-Family Properties**: Investing in multi-family properties could provide a better opportunity to align with FMR guidelines. These properties often offer a mix of unit sizes, allowing for some units to be rented at FMR while others command higher market rents. This diversification can help balance the cash flow and make the investment more viable. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the availability of Section 8 vouchers and the specific needs of voucher holders. This can help investors tailor their offerings and marketing strategies to attract these tenants effectively. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 60565 is to **skip** this market. The gap between FMR and actual rents makes it difficult to achieve positive cash flow, and the limited number of renters in the area further reduces the pool of potential Section 8 tenants. Instead, investors should look for markets where the FMR is closer to the actual rental prices, providing a more favorable environment for Section 8 voucher holders and ensuring better returns on investment.

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.