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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,670 | $278,163 | 0.96% | C |
| 2BR | $3,020 | $381,808 | 0.79% | D |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 60606, Chicago, IL, suggests a stable but cautious outlook for both homeowners and small-portfolio investors over the next 12 to 24 months. The median home value stands at $299,941, indicating a robust but not overheated market. With only 0.3% of listings having reduced their prices, it's clear that sellers maintain significant pricing power. This low reduction rate signals strong demand and a market where buyers are willing to meet or slightly exceed asking prices.
The median days on market (DOM) being listed as N/A can be interpreted as a very active market where homes are selling quickly. A low DOM typically points to a competitive environment, further reinforcing the idea that sellers have the upper hand. This dynamic supports the notion that pricing power will likely persist into the future, barring any unforeseen economic downturns.
On the rental side, the forward monthly rent (FMR) for ZIP 60606 in fiscal year 2024 is projected to be $2,570, while the current market rent, measured by the Zillow Observed Rent Index (ZORI), is $2,730. This indicates a slight softening in rental demand, with the FMR suggesting a potential decrease in rental rates over the coming year. However, the gap between FMR and ZORI is relatively narrow, implying that rental values are expected to remain fairly steady.
For long-hold investors, the data presents a mixed picture. The consistent pricing power in the sales market could support capital appreciation strategies, particularly if the broader economic conditions remain favorable. However, the slight disparity between FMR and ZORI suggests that rental income might not grow at the same pace as home values. Investors should expect modest growth in property values, around 2-3% annually, based on historical trends and current market signals. Rental income, while stable, may see minor adjustments downward, aligning closer to the FMR projection.
In summary, ZIP 60606 offers a balanced opportunity for investors. Pricing power in the sales market is strong, with a median home value of $299,941 and minimal price reductions. The rental market shows a slight softening trend but remains stable overall. Long-term investors can anticipate moderate appreciation in property values, complemented by steady rental income, though they should prepare for potential minor fluctuations in rental rates.
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.