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 | $1,350 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,620 | $140,944 | 1.15% | B |
| 3BR | $2,080 | $206,980 | 1% | B |
| 4BR | $2,380 | $232,771 | 1.02% | B |
U.S. Census Bureau data (2024)
ZIP 60633, located in Chicago, IL, is an ideal candidate for a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for the Chicago-Joliet-Naperville, IL HUD Metro FMR Area for fiscal year 2024 is set at $1410. This figure stands above the current market rent of $1,217, providing a strong positive spread that ensures consistent cash flow. Landlords and small-portfolio investors can leverage this difference to cover their expenses and generate a reliable profit.
The median home value in ZIP 60633 is $184,745, which is relatively stable compared to other areas. This stability means that while property values might not skyrocket, they are unlikely to plummet either, offering a safe haven for those looking to avoid high-risk investments. Additionally, the low price-cut share of 0.2% indicates that properties in this area are generally valued correctly, reducing the likelihood of needing to lower rents significantly to attract tenants.
ZIP 60633's median income of $62,458 is another factor that supports its role as a cash-flow anchor. This income level suggests a population capable of paying higher rents, which aligns well with the elevated FMR. Furthermore, the 36.9% renter share shows a substantial portion of the population who prefer renting over buying, making rental properties in this area highly sought after.
In conclusion, ZIP 60633 offers a secure base for a Section 8 portfolio due to its favorable FMR-to-market rent spread, stable home values, and a significant number of renters with sufficient income to support higher rental payments. These factors make it an excellent choice for investors prioritizing steady cash flow over 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.