Location: Kendall County, 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 | $2,500 |
| 1 Bedroom | $2,630 |
| 2 Bedrooms | $3,030 |
| 3 Bedrooms | $3,900 |
| 4 Bedrooms | $4,410 |
| 5 Bedrooms | $5,116 |
| 6 Bedrooms | $5,730 |
| 7 Bedrooms | $6,188 |
| 8 Bedrooms | $6,497 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,030 | $319,966 | 0.95% | C |
| 3BR | $3,900 | $442,387 | 0.88% | C |
| 4BR | $4,410 | $586,670 | 0.75% | D |
| 5BR | $5,116 | $674,448 | 0.76% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking into Plainfield, IL (ZIP 60585), might raise several concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these objections head-on using the available data.
Will FMR $2,540 (zip FY 2024) cover the mortgage on a $546,759 home?
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 60585 for fiscal year 2024 is set at $2,540. This amount is designed to cover a significant portion of the mortgage on a home priced at $546,759, but it does not guarantee full coverage. According to typical lending practices, a mortgage payment should not exceed 28% of an individual's gross monthly income. With an FMR of $2,540, an investor could reasonably expect to secure a property with a mortgage payment within this range, assuming a standard down payment and interest rate. However, the exact mortgage payment will depend on factors such as the interest rate and loan term, which are not provided here. It is advisable to consult with a lender to determine the precise mortgage payment based on current rates.
Is there enough renter demand at 8.4%?
The rental vacancy rate for ZIP 60585 stands at 8.4%. While this figure is higher than the national average, it does not necessarily indicate a lack of demand. In fact, a moderate vacancy rate can be beneficial as it allows for some flexibility in terms of pricing and tenant selection. A 8.4% vacancy rate suggests that the majority of rental units are occupied, indicating a steady demand for rental properties. Moreover, the presence of a diverse local economy and growing population supports the idea that rental demand is likely to remain stable or even increase over time.
Will vouchers keep pace with $2,334 market rents?
The Housing Choice Voucher Program aims to ensure that voucher holders can afford decent housing in the private market. The current market rent for a two-bedroom apartment in ZIP 60585 is $2,334. Given that the FMR for 2024 is $2,540, it is reasonable to assume that the voucher amounts will adjust to reflect this change. However, the actual amount paid by the voucher program is subject to local housing authority policies and federal guidelines. Investors should verify the specific payment standards in Plainfield to ensure that voucher amounts will indeed cover the market rent. Historically, voucher payments have been adjusted annually to keep up with changes in market conditions, but this is not guaranteed and must be confirmed each year.
In summary, while the data provides a solid foundation for addressing the concerns raised by potential investors, it is important to conduct further research and consult with local real estate experts to make informed decisions about Section 8 investments in ZIP 60585.
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.