Section 8 Fair Market Rent (FMR) for ZIP 60613 - 2027

Investment Score for ZIP 60613

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	$2,580
2 Bedrooms	$2,910
3 Bedrooms	$3,740
4 Bedrooms	$4,270
5 Bedrooms	$4,953
6 Bedrooms	$5,547
7 Bedrooms	$5,991
8 Bedrooms	$6,291

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	$2,580	$235,732	1.09%	B
2BR	$2,910	$428,536	0.68%	D
3BR	$3,740	$726,354	0.51%	F
4BR	$4,270	$1,303,903	0.33%	F
5BR	$4,953	$2,121,361	0.23%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60613 (Chicago, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 60613 in Chicago, IL, is set by HUD for 2026 as follows: - 0BR: $2190 - 1BR: $2340 - 2BR: $2640 - 3BR: $3400 - 4BR: $3930 These figures represent the maximum rent that can be charged to tenants using Section 8 vouchers. However, comparing these FMRs to actual rents provides insight into the dynamics of the voucher program. The Zillow median price for a 2BR property in this area is $402,455, which translates to a monthly mortgage payment of approximately $2,190 assuming a 4.5% interest rate and a 20% down payment. This means that landlords who purchase properties at the median price would likely need to charge more than the FMR to cover their mortgage payments, utilities, and maintenance costs. Given the high price-to-FMR ratio of 12.7x, it suggests that the actual rental market is significantly higher than the FMR. For instance, a 2BR unit priced at $402,455 would have a monthly mortgage payment around $2,190, but typical rental prices would be much higher due to the market conditions. Therefore, voucher holders face significant constraints as they might struggle to find units within the FMR range, especially given the high occupancy rate of 92.1%. #### Affordability & Renter Profile ZIP code 60613 has a population of 52,244, with 61.5% being renters. The median household income is $95,572, indicating a relatively affluent neighborhood. Despite this, the high rent-to-income ratio (2BR FMR is 33.1% of median income) suggests that the rental market is tight and expensive. The high percentage of renters and the occupancy rate indicate a strong demand for rental properties, which could be attributed to the neighborhood's desirability and limited supply of affordable housing. Given that 2BR units are priced at $2,640 under the FMR, it implies that many renters in this area are paying well above this amount. This makes it challenging for voucher holders to find suitable housing, as the majority of available units exceed the FMR limits. #### Investor Angle From an investor perspective, the ZIP code 60613 presents both opportunities and challenges. The median home value of $402,455 suggests that purchasing a property at this price would result in a monthly mortgage payment of about $2,190. However, the actual rental market is much higher, with a price-to-FMR ratio of 12.7x. This indicates that landlords can potentially command much higher rents than the FMR, leading to positive cash flow if they manage to lease their properties at market rates. However, for investors focusing specifically on Section 8 vouchers, the situation is more complex. The FMR for a 2BR unit is $2,640, which is only 33.1% of the median household income. This suggests that the rental market is highly competitive and that voucher holders will find it difficult to secure housing within the FMR range. Investors who want to cater exclusively to Section 8 voucher holders must consider the limited pool of potential tenants and the strict rent limits imposed by HUD. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring properties that are closer to the FMR range, particularly those that are priced below $2,640 for 2BR units. This will increase the likelihood of attracting voucher holders and ensuring compliance with HUD regulations. 2. **Consider Multi-family Properties**: Given the high occupancy rate and the significant portion of renters, multi-family properties might offer better opportunities for positive cash flow. These properties can be managed more efficiently and have a larger tenant base, increasing the chances of finding suitable voucher holders. 3. **Diversify Tenant Base**: While targeting Section 8 voucher holders, it is advisable to diversify the tenant base to include market-rate renters. This strategy can help mitigate the risk of relying solely on voucher programs and provide a more stable cash flow. #### Bottom Line For Section 8-focused investors, ZIP code 60613 presents a mixed picture. The high price-to-FMR ratio and limited availability of units within the FMR range make it challenging to find properties that are attractive to voucher holders. Additionally, the tight rental market and high occupancy rate suggest that competition for tenants is fierce. **Recommendation**: **Skip**. The high cost of entry and the difficulty in finding units that meet the FMR requirements make this ZIP code less favorable for investors focused primarily on Section 8 vouchers. Instead, investors might want to look at areas with lower price-to-FMR ratios and more affordable housing options.

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.