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 | $1,990 |
| 1 Bedroom | $2,120 |
| 2 Bedrooms | $2,390 |
| 3 Bedrooms | $3,070 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,120 | $194,295 | 1.09% | B |
| 2BR | $2,390 | $317,876 | 0.75% | D |
| 3BR | $3,070 | $566,922 | 0.54% | F |
| 4BR | $3,510 | $839,748 | 0.42% | F |
| 5BR | $4,072 | $1,241,369 | 0.33% | F |
U.S. Census Bureau data (2024)
ZIP code 60625 covers the vibrant Lincoln Square neighborhood, known for its strong German heritage and the historic Davis Theater, which serves as a major cultural anchor. The area features a walkable, urban-suburban mix with a robust commercial corridor along Lincoln Avenue, populated by independent boutiques and acclaimed restaurants. This established neighborhood vibe attracts families and professionals seeking stability, making it a reliable market for long-term rental holds.
From a strictly numerical standpoint, the HUD Fair Market Rent (FMR) for a 2-bedroom unit in FY2026 is set at $2,100, while current market rents (Zillow ZORI) sit at $1,944. This creates a favorable gap of $156 per month, meaning voucher holders can often pay above market rate. Assets here are relatively expensive, with a median home value of $402,406 and a median 2BR sales price of $307,395. Properties move with reasonable speed, sitting on the market for a median of 43 days.
The tenant pool is deep, with a renter share of 59.2% and a median household income of $85,703, suggesting financial resilience among the local population. Demand is bolstered by highly-rated public schools like Amundsen High School and convenient access to the CTA Brown Line, which provides direct transit to downtown. These amenities ensure consistent demand from voucher holders who prioritize school quality and commute times.
The Section 8 verdict for 60625 is positive, driven primarily by the cash-flow potential where the HUD payment standard exceeds market rents. While the $402,406 median home value indicates a higher barrier to entry, the $156 positive spread on 2-bedroom units offers a buffer against vacancy. Investors should target well-located multifamily properties near transit to maximize the premium offered by the voucher program.
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.