Section 8 Fair Market Rent (FMR) for ZIP 60644 - 2027

Investment Score for ZIP 60644

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	$1,370
1 Bedroom	$1,450
2 Bedrooms	$1,640
3 Bedrooms	$2,110
4 Bedrooms	$2,410
5 Bedrooms	$2,796
6 Bedrooms	$3,132
7 Bedrooms	$3,383
8 Bedrooms	$3,552

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,640	$156,241	1.05%	B
3BR	$2,110	$221,950	0.95%	C
4BR	$2,410	$274,897	0.88%	C
5BR	$2,796	$326,640	0.86%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60644 (Chicago, IL) #### Section 8 Voucher Dynamics In ZIP code 60644, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1450 per month. This figure represents 42.5% of the median household income of $40,950, which indicates that it is a reasonable rent amount for many residents who qualify for Section 8 vouchers. However, the actual rental market in this area is significantly higher than the FMR. For instance, the Zillow median price for a two-bedroom property is $149,320, suggesting that the average rent might be much higher than the FMR. The price-to-FMR ratio of 8.6x further confirms that the actual rental costs are well above the FMR levels. Given these dynamics, there are several constraints for voucher holders. They must find landlords willing to accept Section 8 vouchers, which can be challenging if the landlord prefers to charge higher rents. Additionally, the voucher amount may not cover all the rent, especially for larger units like three-bedroom ($1870) and four-bedroom ($2160) apartments, where the gap between FMR and actual rents could be substantial. #### Affordability & Renter Profile ZIP code 60644 has a high percentage of renters at 69.8%, indicating a strong demand for rental properties. The occupancy rate of 91.4% suggests that the housing stock is mostly occupied, leaving little room for vacant units. Given the median household income of $40,950, the majority of residents likely fall into the lower-middle-income bracket, making affordability a significant concern. The FMR for a two-bedroom unit being $1450, which is 42.5% of the median income, shows that the housing market is relatively tight. Residents who rely on Section 8 vouchers will find it difficult to secure housing without assistance, given the high actual rental prices. The disparity between the FMR and the actual rental prices also implies that there is a significant portion of the population that may struggle to afford housing without financial aid. #### Investor Angle From an investor perspective, the ZIP code 60644 presents a mixed picture. While the FMRs provide a baseline for rental pricing, the actual market rents are substantially higher. For example, the FMR for a two-bedroom unit is $1450, but the Zillow median price suggests that the actual rental cost could be much higher. This means that investors relying solely on FMRs to determine rental rates may face challenges in achieving positive cash flow. To assess the investment grade, we need to consider the potential for rental income versus the cost of acquisition and maintenance. With the Zillow median price for a two-bedroom unit at $149,320, the price-to-FMR ratio of 8.6x indicates that the purchase price is quite high relative to the FMR. This suggests that the initial capital outlay would be significant, and investors would need to ensure that they can achieve higher rental yields to make the investment viable. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should focus on smaller units such as one-bedroom and zero-bedroom apartments, where the FMR is lower ($1290 and $1200 respectively). These units are more likely to be affordable for Section 8 voucher holders and could offer better cash flow opportunities compared to larger units. 2. **Negotiate with Landlords**: Given the high actual rental prices, investors should work on negotiating with landlords to ensure that the rental rates are closer to the FMR levels. This could involve offering incentives such as longer lease terms or higher upfront payments to landlords who agree to accept Section 8 vouchers. 3. **Consider Property Enhancements**: To attract tenants who may have limited budgets, investors could consider enhancing the properties to improve their appeal. This could include basic renovations, upgrades to appliances, or adding amenities that would make the units more attractive to voucher holders. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 60644 is to **Hold**. The high actual rental prices and the tight market conditions suggest that acquiring properties at FMR levels alone may not be feasible. However, investors who already own properties in this area should continue to manage them effectively, focusing on smaller units and negotiating with landlords to maintain competitive rental rates. For new investors, the high purchase prices and the difficulty in securing properties at FMR levels make this ZIP code less attractive for immediate entry.

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.