Section 8 Fair Market Rent (FMR) for ZIP 60610 - 2027

Investment Score for ZIP 60610

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	$2,520
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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,670	$290,267	0.92%	C
2BR	$3,020	$516,084	0.59%	F
3BR	$3,880	$933,097	0.42%	F
4BR	$4,440	$1,469,840	0.3%	F
5BR	$5,150	$2,723,368	0.19%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60610 (Chicago, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 60610 in Chicago, IL, is set by HUD for 2026 as follows: - 0BR: $2220 - 1BR: $2370 - 2BR: $2670 - 3BR: $3440 - 4BR: $3980 To understand how these FMRs compare to actual rents, we need to consider the price-to-FMR ratio. For a two-bedroom unit, the Zillow median price is $501,309, which translates to a monthly rent of approximately $4177 based on typical mortgage calculations. This results in a price-to-FMR ratio of 15.6x, indicating that actual rents are significantly higher than the FMRs. This high ratio presents several constraints for voucher holders: - The maximum allowable rent under Section 8 for a 2BR unit is $2670, which is far below the actual market rent of $4177. - Voucher holders may struggle to find units that accept their vouchers due to the limited supply of affordable properties. - Landlords who do accept vouchers might face lower rental income compared to market rates, potentially leading to fewer landlords willing to participate in the program. #### Affordability & Renter Profile ZIP code 60610 has a population of 44,883, with 65.6% of residents being renters. The median household income is $105,226, suggesting that many residents have above-average incomes. However, the occupancy rate of 91.7% indicates that the housing market is relatively tight, with most available units being occupied. Given the high proportion of renters and the tight market conditions, it is likely that the majority of renters in this area are middle to upper-middle class individuals who can afford the higher-than-FMR rents. The fact that 2BR units cost 30.4% of the median income suggests that even without vouchers, the cost of renting is a significant portion of household budgets. #### Investor Angle From an investor perspective, the ZIP code 60610 offers mixed opportunities. The FMR for a 2BR unit is $2670, while the actual market rent is around $4177. This means that if an investor were to purchase a property and rent it out at the FMR, they would be significantly below market rates. However, if the goal is to cater specifically to Section 8 voucher holders, the investment must be evaluated against the FMR. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical costs associated with owning and managing a rental property. Assuming a purchase price of $501,309 for a 2BR unit, the monthly mortgage payment (using a 30-year fixed-rate mortgage at 5%) would be approximately $2700. Adding typical property management fees (around 10% of rent), maintenance costs, insurance, and other expenses, the total monthly cost could easily exceed $2670, making it difficult to achieve positive cash flow solely from FMR-based rents. Investment grade for this ZIP code would likely be considered moderate to low for Section 8-focused investors due to the high purchase prices and the potential difficulty in finding tenants willing to pay market rates. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units such as 0BR or 1BR might be more viable options for investors looking to maximize cash flow. These units have FMRs of $2220 and $2370 respectively, which are closer to the actual market rents for similar-sized units. 2. **Consider Mixed-Income Developments**: To attract both voucher holders and market-rate tenants, investors might consider developing mixed-income properties. This approach allows for a balance between FMR-based rents and market-rate rents, potentially improving overall profitability. 3. **Target Underserved Areas**: Within ZIP code 60610, there may be pockets where the demand for affordable housing is higher than the supply. Identifying these areas and focusing on them could help investors capture a larger share of the market and improve their chances of attracting voucher holders. #### Bottom Line For Section 8-focused investors, ZIP code 60610 is generally not recommended due to the high price-to-FMR ratio and the tight market conditions. The recommendation would be to **skip** this ZIP code unless investors can find specific niches or underserved areas where they can offer affordable housing and still maintain positive cash flow. Investors should focus on ZIP codes with lower ratios and more manageable market conditions to ensure better returns and participation in the Section 8 program.

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.