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 | $1,370 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $146,461 | 1.12% | B |
| 3BR | $2,110 | $181,858 | 1.16% | B |
| 4BR | $2,410 | $228,430 | 1.06% | B |
| 5BR | $2,796 | $275,522 | 1.01% | B |
U.S. Census Bureau data (2024)
Chicago's 60620 zip code, primarily encompassing the Chatham and Greater Grand Crossing neighborhoods, offers a blend of historic brick bungalows and sturdy multi-family stock. This area is characterized by a strong sense of community ownership and convenient access to the Chicago Transit Authority’s Red Line, which provides a direct commute to downtown. Local institutions like the Chicago State University campus sit just to the west, serving as a key educational anchor and employment hub for the surrounding blocks. The neighborhood remains a stable, residential area with active block clubs and a history of African American homeownership, though investors should monitor local crime trends carefully.
Fiscally, 60620 presents a tight but workable spread for Section 8 strategies. The FY2024 HUD SAFMR for a 2-bedroom unit sits at $1410, while the projected FY2026 Full FMR rises to $1450. This compares to a current market rent (Zillow ZORI) of $1460, indicating that the HUD payment effectively tracks the private market with a negligible gap of $50. Entry costs are relatively accessible, with a median home value of $175,244 and a specific median 2BR sale price of $135,977. However, turnover is slow, with a median days on market of 70 days, suggesting investors must be prepared for longer holding periods during resale.
The tenant pool here is substantial, with a renter share of 49.8% and a median household income of $48,146. This income level is generally below the threshold needed to comfortably afford the $1460 market rent without cost burden, driving consistent demand for housing vouchers. Families are drawn to the area by resources like the robust Chicago Public Library branch and well-regarded elementary schools such as William J. Bogan Elementary, enhancing the stability of long-term rentals. The combination of lower local wages and high housing costs makes the Housing Choice Voucher program a critical lifeline for many residents in this zip code.
The Section 8 verdict for 60620 leans heavily toward stability over aggressive appreciation. With market rents exceeding the median income, voucher holders represent a reliable tenant class capable of meeting the $1450–$1460 rent ceiling. The low median entry price of $135,977 for 2-bedroom units allows for decent cash-on-cash returns, even if the $50 rent gap provides minimal immediate upside over market rates. Investors should target 3- and 4-bedroom units where the FY2026 FMR jumps to $1870 and $2160 respectively, offering significantly wider margins than the 2BR market.
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.