Section 8 Fair Market Rent (FMR) for ZIP 60566 - 2027

FY 2027 Fair Market Rent Rates

To determine if you should buy in ZIP code 60566 (Unknown, IL) for Section 8 investments, follow these steps:

Step 1: Can the Fair Market Rent (FMR) of $1940 cover your debt service on a property?

• Yes. If the FMR can fully cover your mortgage payments, insurance, and other fixed costs associated with the property, then proceed to Step 2.
• No. If the FMR cannot cover your debt service, buying in ZIP 60566 would not be financially viable under Section 8 guidelines.

Step 2: How does the market rent compare to the FMR?

• Above FMR. If the market rent exceeds $1940, you may still consider purchasing a property, but it will limit the number of eligible Section 8 tenants.
• At FMR. If the market rent is exactly $1940, you can expect a steady flow of Section 8 tenants without significant financial strain.
• Below FMR. If the market rent is less than $1940, there's a risk of undervaluing the property, which could lead to lower returns even though it might attract more Section 8 tenants.

Step 3: Is there sufficient tenant demand?

• It depends. Without specific percentages of renters and days on the market (DOM), it's challenging to assess the demand accurately. However, if the percentage of renters is substantial and the DOM is low, indicating quick property turnover, there's likely enough demand for Section 8 properties.
• Insufficient Data. The lack of detailed data on the percentage of renters and DOM makes it difficult to provide a definitive answer. Additional research into local rental trends and occupancy rates would be necessary to make an informed decision.

Note that the decision to invest in ZIP 60566 hinges on the ability of the FMR to cover your debt service and the relative position of market rents compared to the FMR. Tenant demand must also be evaluated based on available data, which currently is incomplete. Always perform due diligence and consult local real estate experts for the most accurate assessment.

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.