Section 8 Fair Market Rent (FMR) for ZIP 60619 - 2027

Investment Score for ZIP 60619

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	$1,370
1 Bedroom	$1,450
2 Bedrooms	$1,640
3 Bedrooms	$2,110
4 Bedrooms	$2,410
5 Bedrooms	$2,796
6 Bedrooms	$3,132
7 Bedrooms	$3,383
8 Bedrooms	$3,552

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,640	$121,227	1.35%	A
3BR	$2,110	$174,668	1.21%	A
4BR	$2,410	$223,643	1.08%	B
5BR	$2,796	$262,292	1.07%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60619 (Chicago, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 60619, as of 2026, is set at $1450 for a two-bedroom unit. This represents 38.5% of the median household income in the area, which is $45,206. However, the actual rental market price for a two-bedroom unit is significantly higher, with the Zillow median price being $115,198. The price-to-FMR ratio is 6.6x, indicating that the actual market rent is approximately $9,565 per year ($1450 * 6.6). For a Section 8 voucher holder, the maximum rent they can pay is capped at the FMR, which means they would be constrained to paying only $1450 per month, or $17,400 annually for a three-bedroom unit, which has an FMR of $1870. This creates a significant gap between what voucher holders can afford and what landlords might charge, making it challenging for voucher holders to find suitable housing. #### Affordability & Renter Profile ZIP code 60619 has a high renter population percentage of 54.9%, suggesting that renting is a prevalent choice among residents. The occupancy rate of 85.3% indicates that there is a moderate demand for rental units, but not necessarily a tight market. Given the median household income of $45,206, the affordability of rental units is a critical issue. The FMR for a two-bedroom unit is $1450, which is 38.5% of the median income. This suggests that many renters, especially those relying on Section 8 vouchers, face significant financial strain when trying to secure housing. The high price-to-FMR ratio further exacerbates the affordability challenge, as it implies that market rents are much higher than what the government considers fair. #### Investor Angle From an investor's perspective, the ZIP code 60619 presents a mixed scenario. While the FMRs provide a guideline for affordable rents, the actual market rents are substantially higher. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with property ownership. Assuming a conservative estimate of 50% of the FMR going towards expenses (including mortgage payments, maintenance, taxes, and insurance), the net monthly income would be around $725 for a two-bedroom unit ($1450 - $725 = $725). This amount needs to cover all ongoing costs and provide a profit margin. Given the high price-to-FMR ratio, landlords who accept Section 8 vouchers are likely to see lower returns compared to those who can charge market rates. The investment grade for properties in this ZIP code would be considered low due to the limited ability to command higher rents, especially for units that qualify under the Section 8 program. Investors should be cautious about the potential for reduced profitability and the challenges of finding tenants willing to pay market rates. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Since the actual market rents are significantly higher than the FMR, investors should consider acquiring properties where the rent is below the FMR threshold. This would allow them to potentially increase rents over time while still remaining attractive to voucher holders. For instance, a two-bedroom unit priced at $1300 per month could be a good starting point, providing some room to adjust upward without exceeding the FMR cap. 2. **Diversify Tenant Mix**: To mitigate the risk of relying solely on Section 8 voucher holders, investors should aim to diversify their tenant mix. This could include a combination of market-rate tenants and voucher holders. By doing so, they can balance the lower returns from Section 8 units with higher returns from market-rate units, ensuring overall profitability. 3. **Consider Property Improvements**: Investing in property improvements can help justify higher rents and make units more attractive to both voucher holders and market-rate tenants. Upgrades such as modern kitchens, energy-efficient appliances, and updated bathrooms can enhance the appeal of a property and potentially allow for a slight premium over the FMR, although this must be done carefully to avoid exceeding the voucher limits. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 60619 is to **Skip**. The high price-to-FMR ratio and the limited ability to command higher rents make this area less favorable for achieving strong cash flow and profitability. Investors looking to focus exclusively on Section 8 vouchers would likely struggle to find enough tenants willing to pay the capped rates, given the high market rents. Instead, investors should consider areas with a lower price-to-FMR ratio or explore other investment strategies that do not rely solely on Section 8 vouchers.

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.