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 | $1,470 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,760 | $282,538 | 0.62% | D |
| 3BR | $2,260 | $329,770 | 0.69% | D |
| 4BR | $2,590 | $379,317 | 0.68% | D |
| 5BR | $3,004 | $418,487 | 0.72% | D |
U.S. Census Bureau data (2024)
Chicago’s 60639 ZIP code, covering the Belmont Cragin and parts of the Dunning neighborhoods, is a dense, predominantly residential area on the city’s Northwest Side known for its brick bungalows and two-flats. The neighborhood serves as a working-class stronghold with a robust retail corridor along Fullerton and Belmont Avenues, where major employers like the presence of the Swedish Covenant Hospital campus (now part of NorthShore University HealthSystem) just outside the immediate borders draw steady healthcare traffic. Recent years have seen an influx of families attracted by more affordable housing stock compared to nearby Logan Square, supported by improving CTA Blue Line access at the Belmont and Central stations.
From a cash-flow perspective, the numbers reveal a specific market dynamic. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is $1,560, which creates a slight shortfall of $43 against the current market rent of $1,603. However, investors must look toward the FY2026 FMR ladder, which projects a 2BR rate of $1,560, offering a margin closer to market parity. Asset values remain accessible, with a median home value of $318,639 and a specific median 2BR sale price of $268,690. Properties are moving relatively slowly, with a median of 70 days on market, suggesting buyers have negotiating power despite the solid employment base.
Demand drivers are strong here, anchored by a high 51.6% renter share and a median household income of $61,089, indicating a population that relies on rental housing but possesses earnings power above the poverty line. This income profile supports robust Section 8 demand, as tenants often need top-up vouchers to bridge the gap between local wages and market rates. The neighborhood is served by Chicago Public Schools, including options like Steinmetz College Prep, and offers essential retail amenities, maintaining a steady pool of applicants looking for long-term stability in a community that feels more established than the gentrifying core.
The Section 8 verdict for 60639 leans toward a long-term stability and appreciation play rather than aggressive immediate cashflow. With the $43 gap between current market rent and the $1,560 FMR, investors should not expect premium overrides, but the low median entry price of $268,690 for two-bedrooms allows for reasonable debt coverage. The combination of a high renter population, solid median incomes, and the projected FY2024 ZIP-level SAFMR of $1,510 signals a floor under rents. For small-portfolio investors, this area offers a defensive buy-and-hold strategy where preservation of capital and gradual appreciation are the primary returns.
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.