Section 8 Fair Market Rent (FMR) for ZIP 60630 - 2027

Investment Score for ZIP 60630

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	$1,740
1 Bedroom	$1,850
2 Bedrooms	$2,090
3 Bedrooms	$2,690
4 Bedrooms	$3,070
5 Bedrooms	$3,561
6 Bedrooms	$3,988
7 Bedrooms	$4,307
8 Bedrooms	$4,522

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,850	$182,362	1.01%	B
2BR	$2,090	$337,856	0.62%	D
3BR	$2,690	$438,825	0.61%	D
4BR	$3,070	$532,713	0.58%	F
5BR	$3,561	$604,768	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60630 (Chicago, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 60630 is set by HUD for 2026 as follows: - 0BR: $1530 - 1BR: $1630 - 2BR: $1840 (which represents 22.3% of the median household income) - 3BR: $2370 - 4BR: $2740 These figures represent the maximum rent that a Section 8 voucher holder can pay for a unit in this area. However, the actual rental market in ZIP 60630 is significantly higher. The Zillow median price for a 2BR home is $332,288, which translates to a monthly mortgage payment of approximately $1,550 based on a 4.5% interest rate over a 30-year term. This is already close to the FMR for a 2BR unit, but the rental market is even more expensive. The Price-to-FMR ratio for a 2BR unit is 15.0x, indicating that the typical market rent for a 2BR unit is around $27,600 annually or $2,300 per month. This means that voucher holders face significant constraints in finding affordable housing. For instance, a 2BR unit priced at $2,300 per month would be well above the $1,840 limit imposed by the Section 8 program. Therefore, voucher holders must either find units below the FMR or negotiate with landlords to accept the lower rent, which is often challenging given the high demand and limited supply in this area. #### Affordability & Renter Profile ZIP 60630 has a population of 55,486, with 32.4% being renters. This indicates a substantial number of residents who rely on rental housing, approximately 18,000 individuals. The occupancy rate of 94.6% suggests that the market is relatively tight, with most available units quickly occupied. Given the median household income of $98,860, the majority of residents can afford market-rate rents, but those relying on Section 8 vouchers face significant challenges due to the high cost of living. The affordability gap is particularly pronounced for Section 8 voucher holders. A 2BR unit at $1,840 per month represents only 22.3% of the median household income, which is a reasonable portion. However, the actual market rent of $2,300 per month would require 46.6% of the median household income, making it extremely difficult for voucher holders to find suitable housing without financial strain. #### Investor Angle From an investor perspective, the ZIP code 60630 presents both opportunities and challenges. The FMRs are set at levels that are far below the market rents, which means that properties rented through Section 8 vouchers are likely to generate less cash flow compared to market-rate rentals. For example, a 2BR unit renting at the FMR of $1,840 would yield a gross annual income of $22,080. After accounting for typical expenses such as property taxes, insurance, maintenance, and vacancy rates, the net cash flow would be considerably lower. Property taxes alone could amount to $3,000-$4,000 annually, while insurance and maintenance might add another $1,500-$2,000. This leaves a net cash flow of approximately $15,000-$16,000 annually, or $1,250-$1,333 per month. Given the high median home values and the tight rental market, the investment grade for this ZIP code is moderate to low for Section 8-focused investors. While there is a demand for affordable housing, the limited ability to charge market rents restricts potential returns. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units like 0BR and 1BR apartments, where the FMR is closer to the actual market rent. For instance, a 1BR unit renting at $1,630 would be more feasible for voucher holders and could still provide a decent cash flow. 2. **Negotiate with Landlords**: Given the high demand and limited supply, landlords may be willing to accept lower rents if they can secure long-term tenants. Investors could leverage this by offering incentives to landlords who agree to accept Section 8 vouchers, such as property management services or guaranteed occupancy. 3. **Consider Renovation Projects**: Investing in older properties that need renovation can be a viable strategy. By improving the quality of these units, investors can potentially command slightly higher rents while still remaining within the FMR limits. This approach requires upfront capital but can lead to better cash flows in the long run. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 60630 is to **Skip**. The high market rents and tight occupancy rates make it challenging to find properties that offer attractive cash flows when rented at FMR levels. Additionally, the limited availability of units that fit within the FMR constraints means that securing long-term tenants may be difficult. Instead, investors might want to explore other areas with lower market rents or higher FMRs relative to median household incomes, where the dynamics are more favorable for Section 8 properties.

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.