Section 8 Fair Market Rent (FMR) for ZIP 60643 - 2027

Investment Score for ZIP 60643

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	$1,570
1 Bedroom	$1,660
2 Bedrooms	$1,880
3 Bedrooms	$2,420
4 Bedrooms	$2,760
5 Bedrooms	$3,202
6 Bedrooms	$3,586
7 Bedrooms	$3,873
8 Bedrooms	$4,067

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,880	$143,030	1.31%	A
3BR	$2,420	$217,099	1.11%	B
4BR	$2,760	$370,388	0.75%	D
5BR	$3,202	$449,664	0.71%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60643 (Chicago, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 60643 in Chicago, IL, for 2026 is set at $1680 for a two-bedroom unit. This figure represents 24.9% of the median household income in the area, which is $80,852. The FMR is designed to reflect the average rent that a family would pay for a decent-quality rental unit in the local housing market. However, it's important to note that the actual rents can be significantly higher than the FMR, especially in a competitive market like Chicago. According to Zillow, the median price for a two-bedroom rental property in ZIP 60643 is $138,494, which translates to a monthly mortgage payment of approximately $1,154 if financed over 30 years at a 4% interest rate. However, the price-to-FMR ratio is 6.9x, indicating that the actual rents charged by landlords are much higher than the FMR. For example, a two-bedroom unit with a Zillow median price of $138,494 would likely command a rent of around $1,154 per month, but the actual rent could be closer to $1680, which is the FMR for a two-bedroom unit. This means that Section 8 voucher holders face significant constraints in finding affordable housing. The voucher amount may not cover the full rent for a two-bedroom unit, leading to potential out-of-pocket expenses for tenants. For instance, a tenant using a Section 8 voucher for a two-bedroom unit would have to pay the difference between the FMR ($1680) and the landlord's rent, if the landlord charges more than the FMR. #### Affordability & Renter Profile ZIP code 60643 has a population of 45,942, with 25.3% of residents being renters. The occupancy rate stands at 91.7%, suggesting that the market is relatively tight. With a median household income of $80,852, the majority of residents can afford higher rents, but the 25.3% who are renters may struggle to find affordable housing, particularly those relying on Section 8 vouchers. Given that 24.9% of the median income is allocated towards a two-bedroom unit, it indicates that the market is somewhat balanced for middle-income renters. However, low-income renters who depend on Section 8 vouchers will find it challenging to secure housing without additional financial support. The high price-to-FMR ratio (6.9x) further underscores the difficulty in finding affordable units, as landlords often charge well above the FMR to maximize profits. #### Investor Angle From an investor perspective, the ZIP code 60643 presents a mixed picture. While the Zillow median price for a two-bedroom unit is $138,494, the actual rents commanded by landlords are much higher, reflecting the tightness of the market. If we consider the FMR of $1680 for a two-bedroom unit, the cash flow potential for investors is positive, assuming they can secure tenants willing to pay the full FMR. However, the challenge lies in attracting tenants who are willing and able to pay the full FMR. Given the high price-to-FMR ratio, many landlords may opt to charge more than the FMR, making it difficult for Section 8 voucher holders to find suitable housing. Investors should carefully evaluate the demand for Section 8 properties and ensure that their units are priced competitively to attract these tenants. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might want to focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1490, which is still a substantial portion of the median income. By offering one-bedroom units at or below the FMR, investors can attract Section 8 voucher holders more easily. 2. **Consider Location-Specific Pricing**: Within ZIP 60643, there may be pockets where rents are lower due to proximity to public transportation, schools, or other amenities. Investors should conduct a thorough neighborhood analysis to identify areas where rents are more aligned with the FMR. For example, a one-bedroom unit near public transit might be priced at $1490, making it attractive to Section 8 tenants. 3. **Offer Incentives**: To attract Section 8 voucher holders, investors could offer incentives such as free utilities or maintenance services. This can help offset the out-of-pocket expenses that voucher holders might incur when renting a two-bedroom unit at $1680 per month. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 60643 is to **Hold**. The market is tight, with high occupancy rates and a significant number of renters. However, the high price-to-FMR ratio makes it challenging to find cash-flow positive investments for Section 8 properties. Investors should focus on smaller units and strategically price their properties to remain competitive and attractive to voucher holders. Additionally, offering incentives can help mitigate the challenges associated with the high rents commanded by landlords in this area.

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.