Section 8 Fair Market Rent (FMR) for ZIP 60645 - 2027

Investment Score for ZIP 60645

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	$1,790
1 Bedroom	$1,900
2 Bedrooms	$2,150
3 Bedrooms	$2,760
4 Bedrooms	$3,160
5 Bedrooms	$3,666
6 Bedrooms	$4,106
7 Bedrooms	$4,434
8 Bedrooms	$4,656

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
1BR	$1,900	$157,954	1.2%	A
2BR	$2,150	$223,273	0.96%	C
3BR	$2,760	$424,829	0.65%	D
4BR	$3,160	$614,465	0.51%	F
5BR	$3,666	$786,202	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60645 (Chicago, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 60645 is set by HUD for 2026 as follows: - 0BR: $1600 - 1BR: $1710 - 2BR: $1930 (which represents 30.5% of the median household income) - 3BR: $2490 - 4BR: $2880 To understand how these figures compare to actual rents, we need to consider the price-to-FMR ratio, which is reported to be 9.2x for a 2BR unit. This means that the median Zillow price for a 2BR unit is $214,062, which is significantly higher than the FMR. For voucher holders, this implies that they would struggle to find units within their budget. The FMR for a 2BR unit is $1930, but the actual median rent based on the Zillow price would be around $17,100 annually ($214,062 / 9.2). Therefore, voucher holders would likely face challenges in finding affordable housing options within the ZIP code, as the actual rents are far above the FMR. #### Affordability & Renter Profile ZIP code 60645 has a population of 48,208, with 46.2% of residents being renters. The occupancy rate is quite high at 92.3%, indicating that there is a strong demand for rental properties in this area. Given the median household income of $76,045, the FMR for a 2BR unit at $1930 is indeed a significant portion of the income (30.5%). This suggests that the majority of renters in this ZIP code would find it difficult to afford a 2BR unit without assistance. The tight market conditions and high occupancy rates imply that the supply of rental units is constrained relative to the demand, making it a competitive environment for both tenants and landlords. #### Investor Angle From an investor perspective, the ZIP code appears to have potential for cash flow, but it depends on the specific property type and size. The FMR for a 2BR unit is $1930, while the median Zillow price is $214,062. To determine if this ZIP code is cash-flow positive, we can use the price-to-rent ratio. If we assume a conservative annual yield of 5% on the median Zillow price, the expected annual rental income would be approximately $10,703 ($214,062 * 0.05). Dividing this by 12 months gives us a monthly rental income of about $892, which is far below the FMR of $1930. However, this calculation assumes a very low yield, and actual yields can vary widely depending on the property’s condition, location, and other factors. Given the high occupancy rate and strong demand, investors could potentially achieve higher yields. For example, if a 2BR unit were rented out at the FMR of $1930 per month, the annual rental income would be $23,160. This would represent a much higher yield of approximately 10.8% ($23,160 / $214,062), which is generally considered good for real estate investments. However, the challenge lies in finding properties that can be rented out at or near the FMR due to the high median home prices. In terms of investment grade, ZIP code 60645 seems to offer a moderate risk with potentially high returns, given the strong demand and limited supply. However, the high median home prices and the difficulty in renting units at the FMR level suggest that investors should carefully evaluate their ability to manage properties effectively and maintain them at a level that justifies the FMR rent. #### 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 0BR or 1BR apartments, where the FMR is lower ($1600 and $1710 respectively). These units are more likely to be rented out at or near the FMR, providing a better opportunity for cash flow. 2. **Consider Renovation Projects**: Investors who can acquire older properties at a discount and renovate them to meet modern standards might be able to command rents closer to the FMR. This strategy requires a detailed understanding of renovation costs and potential rental income. 3. **Target Areas with Lower Home Prices**: Within ZIP code 60645, there may be pockets or neighborhoods with lower median home prices. Identifying these areas could help investors find properties that are more aligned with the FMR, thus improving the likelihood of achieving positive cash flow. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 60645 is to **Hold**. While there is strong demand and high occupancy rates, the high median home prices make it challenging to find properties that can be rented out at the FMR. Investors should be cautious and consider focusing on smaller units or targeting areas with lower home prices to improve their chances of success. Additionally, thorough due diligence and a clear understanding of the local rental market dynamics are essential before making any investment decisions.

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.