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 | $2,520 |
| 1 Bedroom | $2,670 |
| 2 Bedrooms | $3,020 |
| 3 Bedrooms | $3,880 |
| 4 Bedrooms | $4,440 |
| 5 Bedrooms | $5,150 |
| 6 Bedrooms | $5,768 |
| 7 Bedrooms | $6,229 |
| 8 Bedrooms | $6,540 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,670 | $350,265 | 0.76% | D |
| 2BR | $3,020 | $539,043 | 0.56% | F |
| 3BR | $3,880 | $776,834 | 0.5% | F |
| 4BR | $4,440 | $1,007,542 | 0.44% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 60642 in Chicago, IL, for fiscal year 2024 is set at $2,570. This figure represents the maximum amount that a landlord can receive through the Section 8 program for a unit in this area. It's important to note that this is not the rent you would charge your tenant; rather, it's the benchmark used by the government to determine how much they will pay toward the rent on behalf of eligible tenants.
To put this into perspective, the Zillow Observed Rent Index (ZORI) for ZIP 60642 is currently at $2,666. This indicates that the average market rent is slightly higher than the FMR, which could mean that landlords participating in Section 8 might see a slight reduction in income compared to renting out units at market rates. However, the Section 8 program ensures timely payments and provides a stable source of income.
The demand for rental properties in this area is strong, with 66.3% of residents being renters. This high percentage suggests that there are many potential tenants who may be interested in your property, especially those who qualify for the Section 8 program. The acquisition cost of a typical home in ZIP 60642 is around $549,963, which is significant but can be offset by long-term rental income and potential appreciation in property value.
Before making the decision to participate in Section 8, verify that your property meets all the necessary housing quality standards. These standards ensure that the living conditions are safe and habitable for tenants, and failing to meet them can result in penalties or disqualification from the program.
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.