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 | $1,610 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,710 | $187,906 | 0.91% | C |
| 2BR | $1,930 | $321,280 | 0.6% | D |
| 3BR | $2,480 | $387,864 | 0.64% | D |
| 4BR | $2,830 | $452,591 | 0.63% | D |
| 5BR | $3,283 | $496,827 | 0.66% | D |
U.S. Census Bureau data (2024)
Chicago 60634, covering the Belmont Cragin and Dunning neighborhoods, is a dense, predominantly residential area known for its brick bungalows and two-flats. The community is transitioning rapidly, attracting working-class families due to its proximity to the CTA Blue Line’s Belmont and Cumberland stations, which offer direct downtown access. This transit connectivity is a major draw, alongside the presence of major employers like Resurrection Medical Center, which anchors the local healthcare economy and provides stable employment for residents.
From a financial perspective, the math reveals a tight but manageable spread for voucher holders. The FY2026 HUD Fair Market Rent for a 2BR unit is set at $1,680, while current market rents (Zillow ZORI) sit at $1,888, creating a $208 gap between the subsidy ceiling and market reality. Investors should note the median home value is $363,784, with a median 2BR sale price of $307,222. Properties are moving at a moderate pace, with a median of 61 days on market. While the $1,680 voucher cap covers roughly 89% of the market rent, landlords must either absorb the difference or find slightly below-market units to ensure full coverage.
The tenant pool here is characterized by solid fundamentals. With a median household income of $88,533 and a renter share of only 25.3%, the area is predominantly owner-occupied, suggesting a stable neighborhood with strong pride of ownership. This environment minimizes vacancy risk for the few available rentals. The presence of highly rated public schools like Locke Elementary enhances the appeal for long-term voucher tenants looking for family-friendly stability, though availability is competitive.
The Section 8 verdict for 60634 leans heavily toward appreciation and stability rather than aggressive immediate cashflow. The $208 negative gap between the 2BR FMR and market rent means you cannot rely solely on the voucher payment to hit top-market rates. However, the high median income and low rental density suggest that any multifamily asset is likely to appreciate steadily as the neighborhood continues to densify. This is a "buy and hold" play where you secure a tangible asset in a high-income area, accepting modest rents in exchange for potentially significant long-term equity gains.
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.