Section 8 Fair Market Rent (FMR) for ZIP 60649 - 2027

Investment Score for ZIP 60649

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	$1,430
1 Bedroom	$1,510
2 Bedrooms	$1,710
3 Bedrooms	$2,200
4 Bedrooms	$2,510
5 Bedrooms	$2,912
6 Bedrooms	$3,261
7 Bedrooms	$3,522
8 Bedrooms	$3,698

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
1BR	$1,510	$80,917	1.87%	A+
2BR	$1,710	$112,335	1.52%	A+
3BR	$2,200	$163,053	1.35%	A
4BR	$2,510	$232,342	1.08%	B
5BR	$2,912	$332,074	0.88%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60649 (Chicago, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 60649 is set by HUD to ensure that low-income households can afford decent housing. For 2026, the FMRs are as follows: - 0BR: $1260 - 1BR: $1350 - 2BR: $1520 - 3BR: $1960 - 4BR: $2260 These FMRs represent the maximum rent that a household receiving a Section 8 voucher can pay. However, the actual rents in the area can be significantly higher. The price-to-FMR ratio for a 2BR unit is 6.2x, meaning that the median Zillow price of $112,839 would imply a monthly rent of approximately $940 ($112,839 / 12 months). This is well below the FMR of $1520, indicating that there is a significant gap between the Zillow median price and the FMR. Given that the FMR for a 2BR unit is $1520, which represents 41.3% of the median household income of $44,175, voucher holders face substantial constraints. They must find units that do not exceed their voucher amount, which can be challenging given the high actual rents in the area. #### Affordability & Renter Profile ZIP code 60649 has a population of 48,056, with 74.9% of residents being renters. This indicates a strong rental market where a large portion of the population relies on renting rather than owning homes. The occupancy rate of 86.8% suggests that the housing stock is relatively utilized, but not fully occupied, leaving room for potential growth. The median household income of $44,175 places many residents in the low-income category, making them eligible for Section 8 vouchers. However, the high actual rents mean that many voucher holders may struggle to find affordable housing within the FMR limits. The affordability challenge is compounded by the fact that the Zillow median price for a 2BR unit is only $940 per month, far below the FMR, suggesting that the market is not tightly aligned with the FMR standards. #### Investor Angle From an investor perspective, the ZIP code 60649 offers opportunities, but also challenges. The FMRs provide a benchmark for what voucher holders can afford, but the actual rents in the area are much higher. This means that landlords who accept Section 8 vouchers will need to ensure that their properties are priced competitively within the FMR range to attract tenants. The Zillow median price for a 2BR unit is $112,839, which translates to a monthly rent of about $940. This is significantly lower than the FMR of $1520, indicating that there could be cash flow opportunities if investors can secure properties at or near the Zillow median price. However, the high price-to-FMR ratio of 6.2x suggests that the market is not entirely aligned with the FMR, and investors should carefully consider the local rental dynamics before making any investments. The investment grade for this ZIP code can be considered moderate due to the high percentage of renters and the occupancy rate. While there is demand for rental units, the high actual rents relative to the FMR indicate that the market is somewhat overpriced for low-income households. #### Specific Actionable Insights 1. **Target Properties Below FMR**: Investors should focus on acquiring properties that are priced below the FMR. For example, a 2BR unit priced at $112,839 (monthly rent of $940) would be highly attractive to voucher holders and potentially offer better cash flow compared to properties priced closer to the FMR. 2. **Consider Smaller Units**: Given the high FMR for larger units, investors might want to consider smaller units such as 0BR or 1BR apartments. These units have lower FMRs ($1260 and $1350 respectively), which could make it easier to find tenants willing to pay the full FMR. 3. **Evaluate Local Rental Trends**: Despite the high price-to-FMR ratio, it is important to evaluate local rental trends. If the actual rents are consistently higher than the FMR, investors might need to adjust their expectations and consider the possibility of lower occupancy rates among voucher holders. #### Bottom Line For Section 8-focused investors, the ZIP code 60649 presents a mixed picture. While there is a significant demand for rental units and a high percentage of renters, the actual rents are much higher than the FMRs, which could limit the pool of eligible tenants. **Recommendation**: Hold. Investors should proceed cautiously and evaluate the local rental market closely before making any purchases. Targeting properties below the FMR and focusing on smaller units could help mitigate some of the risks associated with the high actual rents. However, the overall market dynamics suggest that the area may not be fully aligned with the needs of low-income households, making it less ideal for pure Section 8 investments.

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.