Section 8 Fair Market Rent (FMR) for ZIP 60586 - 2027

Investment Score for ZIP 60586

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	$2,430
1 Bedroom	$2,570
2 Bedrooms	$2,950
3 Bedrooms	$3,800
4 Bedrooms	$4,300
5 Bedrooms	$4,988
6 Bedrooms	$5,587
7 Bedrooms	$6,034
8 Bedrooms	$6,336

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	$2,950	$284,970	1.04%	B
3BR	$3,800	$370,593	1.03%	B
4BR	$4,300	$439,182	0.98%	C
5BR	$4,988	$476,556	1.05%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60586 (Plainfield, IL) #### Section 8 Voucher Dynamics In ZIP code 60586, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2600 per month for the year 2026. This figure represents 23.7% of the median household income in Plainfield, which stands at $131,637. However, it is crucial to understand how this FMR compares to actual rental rates in the area. According to the data provided, the Zillow median price for a two-bedroom home is $278,355, indicating that the average rent for such a property would likely be significantly higher than the FMR. The price-to-FMR ratio for a two-bedroom unit is 8.9x, suggesting that the actual rental prices are much higher than the FMR. This discrepancy poses several constraints for voucher holders. First, finding a rental property that accepts Section 8 vouchers and charges the FMR may be challenging due to the high actual rental prices. Second, even if a landlord agrees to accept the voucher, they might still charge a premium above the FMR, leaving the tenant responsible for the difference. For instance, a landlord could charge $3000 for a two-bedroom unit, which would mean the tenant would need to pay an additional $400 out-of-pocket each month. #### Affordability & Renter Profile The population of Plainfield is 47,834, and only 8.5% of residents are renters, indicating a relatively low rental demand compared to owner-occupied homes. The occupancy rate of 99.5% suggests that there is a strong demand for housing overall, but this demand is primarily met by homeowners rather than renters. Given the median household income of $131,637, most residents can afford to purchase homes rather than rent them, making the rental market quite competitive and potentially less affordable for those relying solely on Section 8 vouchers. The tight market conditions mean that landlords have significant leverage over rental pricing. With a small percentage of the population renting, the competition among renters is likely fierce, pushing up rental prices. This makes it difficult for voucher holders to find affordable housing options, especially when the FMR is already a substantial portion of their income. #### Investor Angle From an investor perspective, the ZIP code 60586 presents a mixed picture. While the actual rental prices are high, the FMR set by HUD is significantly lower. To determine if investing in this ZIP code is cash-flow positive at FMR, we must consider the typical rental yields and expenses. Given the high median home price of $278,355, the cost of acquiring rental properties is also elevated. If an investor were to purchase a two-bedroom property at the median price, the monthly mortgage payment alone would likely exceed the FMR. Additionally, the high price-to-FMR ratio indicates that the rental market is not aligned with the FMR, meaning that landlords who accept Section 8 vouchers would face financial challenges unless they can find other ways to offset costs. The investment grade for this ZIP code would be considered low for Section 8-focused investors due to the limited number of renters and the high actual rental prices. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high FMR for larger units, investors should focus on smaller units like one-bedroom apartments. The FMR for a one-bedroom unit is $2270, which is lower than the FMR for a two-bedroom unit. This could provide a better opportunity for cash flow, especially if the actual rental prices for these units are closer to the FMR. 2. **Consider Alternative Financing Options**: Due to the high median home price, traditional financing might not be sufficient to cover the costs of purchasing rental properties. Investors should explore alternative financing options such as hard money loans or private lenders to secure the necessary capital without being overly reliant on the FMR for cash flow. 3. **Negotiate with Landlords**: Since the actual rental prices are significantly higher than the FMR, landlords might be hesitant to accept Section 8 vouchers. Investors should work on negotiating with landlords to ensure they receive a fair return on their investment while still providing affordable housing options for voucher holders. #### Bottom Line Given the high actual rental prices and the limited number of renters, the ZIP code 60586 is not recommended for Section 8-focused investors. The high price-to-FMR ratio and the fact that the FMR is already a substantial portion of the median household income make it challenging to find profitable opportunities. Therefore, the recommendation is to **skip** this ZIP code for Section 8 investments and look for areas where the rental market is more aligned with the FMR and has a higher percentage of renters.

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.