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 | $1,600 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,820 |
| 5 Bedrooms | $3,271 |
| 6 Bedrooms | $3,664 |
| 7 Bedrooms | $3,957 |
| 8 Bedrooms | $4,155 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,920 | $398,776 | 0.48% | F |
| 3BR | $2,470 | $541,175 | 0.46% | F |
| 4BR | $2,820 | $675,757 | 0.42% | F |
| 5BR | $3,271 | $877,278 | 0.37% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 60646 in Chicago, IL, reveals several key points that landlords and small-portfolio investors should consider.
Firstly, regarding the rent math, the Fair Market Rent (FMR) for the area set at $1,680 for fiscal year 2024 does not align well with the market rent, which stands at $1,846 (ZORI). This indicates that the rental income based on FMR guidelines will be lower than what the market can bear, potentially leading to financial strain if properties are rented below market rates.
Secondly, the acquisition cost in the form of the median home value at $536,681 is relatively high. However, the quick turnover indicated by a 10-day days-on-market (DOM) and a low 0.2% price-cut share suggests that homes are selling rapidly without significant discounts, indicating strong demand and possibly a good opportunity for investment despite the higher entry costs.
Lastly, concerning tenant demand, the ZIP code has a population of 28,780, with 21.0% of residents being renters. This means there are approximately 6,044 potential renters in the area, providing a solid base of potential tenants.
Verdict: The rent math in ZIP 60646 does not work favorably for landlords adhering strictly to FMR guidelines, as the market rent exceeds the FMR by $166 per month. Despite the high median home value, the strong sales velocity and minimal price adjustments indicate that acquisitions remain affordable due to robust market conditions. Tenant demand is present but limited to a specific portion of the population, making it essential for landlords to target their offerings effectively to capture this market segment. Overall, the area presents opportunities for investment but requires careful consideration of rental pricing strategies to ensure profitability.
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.