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 | $2,140 |
| 1 Bedroom | $2,270 |
| 2 Bedrooms | $2,570 |
| 3 Bedrooms | $3,300 |
| 4 Bedrooms | $3,770 |
| 5 Bedrooms | $4,373 |
| 6 Bedrooms | $4,898 |
| 7 Bedrooms | $5,290 |
| 8 Bedrooms | $5,555 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,270 | $341,390 | 0.66% | D |
| 2BR | $2,570 | $481,185 | 0.53% | F |
| 3BR | $3,300 | $703,199 | 0.47% | F |
| 4BR | $3,770 | $1,034,046 | 0.36% | F |
| 5BR | $4,373 | $1,327,609 | 0.33% | F |
U.S. Census Bureau data (2024)
Chicago’s 60647 ZIP code, encompassing the vibrant Logan Square and Avondale neighborhoods, is a hub of historic architecture and modern transit connectivity. The area is characterized by its bustling nightlife along Milwaukee Avenue and easy access to the CTA Blue Line, which provides rapid downtown transit. Major local employers include presence from the healthcare and retail sectors, with notable institutions like Presence Saints Mary and Elizabeth Medical Center serving the community. This blend of accessibility and urban energy maintains high demand for rental housing.
From a valuation standpoint, the area commands a premium, with a median home value of $552,119 and a median 2BR sale price of $456,870. Median days on market sit at 39 days, indicating active turnover. Financially, the math requires scrutiny: the FY2024 HUD SAFMR for a 2BR unit is $2,000, while the current market rent (Zillow ZORI) reaches $2,322. This creates a cash-flow gap of $322 per month. Looking ahead, the FY2026 Full FMR ladder rises to $2,220 for a 2BR, still leaving a $102 deficit against today’s market rates.
Despite the tight margins, demand remains robust due to a 61.2% renter share and a median household income of $107,060. While high incomes suggest a competitive market for conventional leases, they also correlate with strong amenities. Families benefit from access to highly-rated Chicago Public Schools like Lane Tech College Prep and Logan Elementary, and the pedestrian-friendly boulevards ensure steady tenant interest. This environment suggests that voucher holders, though facing price ceilings, gain access to a stable, amenity-rich neighborhood.
The strongest investor angle here is appreciation over immediate cashflow. With market rents exceeding FY2024 voucher limits by $322, strictly relying on HUD payments leaves money on the table compared to market-rate tenants. However, rising FY2026 FMRs to $2,220 narrow the gap. Investors should view 60647 as a long-term hold where property value growth—evidenced by a mid-tier home value over $550k—outweighs the initial rental subsidy constraints, provided assets are managed efficiently to minimize vacancy during the 39-day turnover cycle.
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.