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 | $1,780 |
| 1 Bedroom | $1,890 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,130 |
| 5 Bedrooms | $3,631 |
| 6 Bedrooms | $4,067 |
| 7 Bedrooms | $4,392 |
| 8 Bedrooms | $4,612 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,890 | $269,537 | 0.7% | D |
| 2BR | $2,130 | $337,381 | 0.63% | D |
| 3BR | $2,740 | $409,730 | 0.67% | D |
| 4BR | $3,130 | $641,336 | 0.49% | F |
| 5BR | $3,631 | $845,049 | 0.43% | F |
U.S. Census Bureau data (2024)
To strategically position ZIP 60612 within a Section 8 portfolio, consider it primarily as a cash-flow anchor. The Family Monthly Rent (FMR) for the Chicago-Joliet-Naperville, IL HUD Metro FMR Area in fiscal year 2024 is set at $1770, which is notably lower than the market average rental rate of $2,388. This creates a spread of $618 per unit, offering a reliable cushion against potential financial volatility.
The median home value in ZIP 60612 stands at $357,012, indicating a relatively stable real estate market. However, the focus on cash flow over appreciation makes sense given that the average price-cut share is only 0.1%, suggesting limited room for significant price increases. Additionally, the Days on Market (DOM) of 23 days is standard and does not signal rapid market absorption that would typically support an appreciation play.
A key factor supporting the cash-flow anchor strategy is the high renter share of 68.8%. This means there is a substantial demand for rental properties, making it easier to maintain occupancy rates and steady cash flow. Furthermore, the median household income of $60,922 aligns well with the FMR, ensuring that tenants have sufficient income to meet their rental obligations under the Section 8 program.
In summary, ZIP 60612 is best suited as a cash-flow anchor due to the significant gap between the FMR and market rates, coupled with a robust tenant base and stable home values. This positioning allows landlords and small-portfolio investors to rely on consistent returns while minimizing the risk associated with volatile market conditions.
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.