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 | $1,440 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,530 |
| 5 Bedrooms | $2,935 |
| 6 Bedrooms | $3,287 |
| 7 Bedrooms | $3,550 |
| 8 Bedrooms | $3,728 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,720 | $238,834 | 0.72% | D |
| 3BR | $2,210 | $282,794 | 0.78% | D |
| 4BR | $2,530 | $329,891 | 0.77% | D |
| 5BR | $2,935 | $371,029 | 0.79% | D |
U.S. Census Bureau data (2024)
Chicago’s 60651 ZIP code covers parts of the East Garfield Park and North Lawndale neighborhoods, areas undergoing gradual revitalization while retaining strong community roots. This section of the West Side is characterized by historic graystone and brick two-flats, offering investors classic Chicago architecture. The local economy benefits from the presence of major healthcare institutions, with the Mount Sinai Hospital Medical Center serving as a significant employer and stabilizing anchor for the surrounding residential blocks.
Financially, the data reveals a tight spread between subsidized and market rates. The HUD FY2026 Fair Market Rent for a 2-bedroom unit is $1,530, which trails the current Zillow market rent of $1,676 by $146 per month. This gap suggests voucher tenants may offer slightly less yield than market-rate tenants in the immediate term, though the subsidy guarantees payment. Median home values sit at $267,647, with a specific median 2BR sale price of $219,912. Inventory moves at a moderate pace, with properties spending a median of 74 days on market before closing.
Demand is reinforced by a high renter population of 52.8% and a median household income of $54,409. This income level creates a natural pool of renters who may qualify for or require housing assistance to bridge the affordability gap. The neighborhood is supported by key transit infrastructure, including the CTA Blue Line’s Kedzie-Homan station, which facilitates access to downtown jobs. Additionally, the proximity to the Garfield Park Conservatory provides a unique cultural and recreational amenity that enhances neighborhood appeal for long-term residents.
The strongest investor angle here is long-term appreciation and stability rather than immediate cash-flow maximization. The $146 negative gap between FMR and market rent indicates that cash flow is not the primary driver; instead, the lower entry price of $219,912 for a 2BR combined with guaranteed HUD payments offers a defensive investment strategy. With major employers and transit links solidifying the tenant base, investors can bank on the neighborhood’s continued recovery and the security of government-backed leases.
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.