Location: Chicago-Joliet-Naperville, 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 | $2,520 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,670 | $267,723 | 1% | C |
| 2BR | $3,020 | $475,551 | 0.64% | D |
| 3BR | $3,880 | $945,606 | 0.41% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 60602 in Chicago, IL, reveals several key points for landlords and small-portfolio investors.
Firstly, the rent math is nearly balanced. The Fair Market Rent (FMR) set at $2570 for FY 2024 is only slightly higher than the market rent, which stands at $2,437 (ZORI). This indicates that rental properties in this area can attract tenants willing to pay close to the government-subsidized rates, making it feasible for landlords participating in Section 8 programs.
Secondly, the acquisition of homes in this ZIP code is moderately affordable. With a median home value of $248,179, potential investors have an opportunity to purchase properties without facing exorbitant costs. However, the lack of available data on days on market (DOM) and the low price-cut share of 0.2% suggest that competition for these homes might be fierce, with little room for negotiation on price.
Lastly, there is significant tenant demand. The population of 1,480 in ZIP 60602 shows a high concentration of renters, with 62.8% of residents choosing to rent rather than own their homes. This high renter share indicates a robust market for rental properties, ensuring a steady stream of potential tenants.
In conclusion, ZIP 60602 presents a viable investment opportunity for those interested in Section 8 properties. The slight discrepancy between FMR and ZORI suggests that landlords can participate in the program while still achieving market rents. The median home value makes acquisitions possible, though competitive conditions may limit bargaining power. Strong tenant demand, driven by a high percentage of renters, ensures that properties will likely be occupied promptly. For investors looking to enter the Chicago rental market, 60602 offers a promising balance of affordability and demand.
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.