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 | $1,280 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $86,730 | 1.76% | A+ |
| 3BR | $1,970 | $116,355 | 1.69% | A+ |
| 4BR | $2,250 | $140,441 | 1.6% | A+ |
| 5BR | $2,610 | $178,984 | 1.46% | A |
U.S. Census Bureau data (2024)
The investment landscape in ZIP code 60621, located in Chicago, IL, presents several challenges for landlords considering participation in the Section 8 program. Tenant turnover is a significant concern, as the market rent of $1,696 stands notably higher than the Fair Market Rent (FMR) for Section 8 vouchers, which is set at $1,280 for FY 2024. This disparity can lead to frequent turnover, as tenants might struggle to afford the difference between their voucher amount and the actual market rent.
Vacancy exposure is another risk factor. The Days on Market (DOM) for properties in this area is not available, making it difficult to predict how long a property might remain vacant. Given the high market rents, the time it takes to find a new tenant could be extended, leading to financial strain during periods of vacancy.
Deferred maintenance is also a critical issue. With a typical home value of $117,770 and a median income of $31,905, many homeowners may delay necessary repairs due to financial constraints. This situation could impact the overall condition of rental properties, potentially requiring substantial investments to meet housing quality standards mandated by the Section 8 program.
However, these risks must be weighed against the high renter share in the area, which stands at 70.6%. Such a high proportion of renters typically indicates a strong demand for affordable housing, including those using Section 8 vouchers. This high renter density can translate into a robust tenant pool, mitigating some of the risks associated with vacancy and turnover.
In conclusion, the risks associated with investing in Section 8 properties in ZIP 60621 are moderate. Landlords should prepare for potential financial pressures due to the rent gap and be ready to invest in property maintenance to ensure compliance with program requirements. Despite these challenges, the high renter share suggests a steady demand for affordable units, providing a stable tenant base.
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.