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 | $1,420 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,700 | $121,009 | 1.4% | A |
| 3BR | $2,190 | $157,558 | 1.39% | A |
| 4BR | $2,500 | $184,436 | 1.36% | A |
| 5BR | $2,900 | $198,541 | 1.46% | A |
U.S. Census Bureau data (2024)
Chicago 60628, largely covering the Far South Side neighborhoods of Roseland and West Pullman, is characterized by its historic bungalow stock and vast residential lots. While the area has faced economic headwinds, it retains strong community anchors, including presence from the Chicago Transit Authority’s rail maintenance facilities and the nearby Roseland Community Hospital, which serve as significant local employers. This is a neighborhood in transition, offering investors an entry point into a predominantly built-out urban environment with a focus on stabilizing single-family and small multi-family assets.
From a valuation perspective, the market presents a notable spread between ownership costs and rental income. The median home value sits at $144,598, with median 2BR properties selling for $114,911 and spending a median of 72 days on market. Income potential is healthy, as market rents for a 2BR unit reach $1,600, well above the FY2026 HUD Fair Market Rent of $1,490. This creates a tangible gap of $110 per month where market-rate tenants outpay the voucher standard. However, even at the lower $1,490 FMR, the ratio against the low median purchase price suggests strong leverage potential for cash flow if acquisition costs are managed well.
The tenant pool is substantial, with renter households comprising 39.9% of the population and a median household income of $54,644. This income level is high enough to support the $1,600 market rent but low enough to ensure consistent demand for housing assistance programs. Families are often drawn to the area by access to specific educational institutions, such as the highly rated Chicago High School for Agricultural Sciences, which provides a unique magnet option within the public school system and supports neighborhood stability.
The Section 8 verdict for 60628 leans heavily toward a cash flow and stability play. The $110 spread between market rent and the $1,490 voucher ceiling indicates that vouchers cover the vast majority of market rates, minimizing vacancy risk. With a median 2BR price of $114,911, the potential for immediate positive cash flow is high compared to city averages, making this ZIP code a target for investors seeking high-yield, entry-level portfolios rather than rapid appreciation.
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.