Section 8 Fair Market Rent (FMR) for ZIP 60652 - 2027

Investment Score for ZIP 60652

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	$1,570
1 Bedroom	$1,660
2 Bedrooms	$1,880
3 Bedrooms	$2,420
4 Bedrooms	$2,760
5 Bedrooms	$3,202
6 Bedrooms	$3,586
7 Bedrooms	$3,873
8 Bedrooms	$4,067

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
2BR	$1,880	$237,395	0.79%	D
3BR	$2,420	$278,543	0.87%	C
4BR	$2,760	$317,694	0.87%	C
5BR	$3,202	$348,360	0.92%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60652 (Chicago, IL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 60652, as provided by HUD for 2026, are as follows: - 0BR: $1450 - 1BR: $1540 - 2BR: $1740 - 3BR: $2240 - 4BR: $2590 To understand how these FMRs compare to actual rents, we need to consider the occupancy rate and the renter percentage. The occupancy rate is high at 97%, indicating that there is little vacancy in the market. This suggests that landlords have a strong bargaining position, and actual rents could be higher than the FMRs. However, the renter percentage is relatively low at 15.3%, which means that the majority of residents are homeowners, potentially limiting the demand for rental properties. For voucher holders, the FMRs represent the maximum amount they can receive to cover their rent. In ZIP 60652, a voucher holder with a 2BR unit would receive $1740 per month. This is significantly lower than the Zillow median price for a 2BR property, which stands at $223,920. The price-to-FMR ratio of 10.7x indicates that the median home value is much higher than the monthly rent, suggesting that the rental market is likely to be competitive and that voucher holders may face challenges finding affordable units. #### Affordability & Renter Profile The median household income in ZIP 60652 is $80,020, which provides some context on the economic profile of the area. A 2BR unit at $1740 represents approximately 26.1% of the median income, which is generally considered affordable. However, given the low renter percentage and high occupancy rate, it's clear that the rental market is tight. Rental units are scarce, and the competition for them is intense. The 15.3% renter population implies that only a small portion of the total housing stock is dedicated to rentals, making it difficult for voucher holders to find units within their budget. Additionally, the high occupancy rate suggests that any available rental units are quickly snapped up, leaving little room for voucher holders who might require additional time to secure a unit. #### Investor Angle From an investor perspective, the key question is whether the rental market in ZIP 60652 is cash-flow positive at the FMR levels. Given the high occupancy rate and the scarcity of rental units, it is likely that investors can achieve positive cash flow if they manage to secure rental properties at or below the FMR levels. However, the challenge lies in finding such properties, as the median home value far exceeds the FMR for rental units. The investment grade for this ZIP code would be moderate to high, considering the strong demand for rental units and the potential for steady cash flow. However, the limited supply of rental properties and the high competition make it challenging for investors to enter the market. Moreover, the tight market conditions suggest that rental prices are likely to remain above the FMR, which could limit the number of voucher holders able to afford the units. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high occupancy rate and the tight market, investors should focus on acquiring smaller units (0BR and 1BR) where the FMR is lower. For example, a 0BR unit at $1450 or a 1BR unit at $1540 would be more accessible to voucher holders and could provide a better chance for positive cash flow. 2. **Consider Gentrification Trends**: Although the median household income is relatively high at $80,020, gentrification trends could push more residents into the rental market. Investors should monitor local developments and consider areas that are undergoing changes, as these could present opportunities for acquiring rental properties at more reasonable prices. 3. **Engage with Local Real Estate Agents**: Due to the competitive nature of the rental market, engaging with local real estate agents who have access to off-market listings could be beneficial. These agents might be able to connect investors with properties that are not yet listed publicly but could still be rented out at or near FMR levels. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 60652 would be to **Hold**. While the rental market shows strong demand and potential for positive cash flow, the high occupancy rate and low renter percentage indicate a challenging environment for securing rental properties. Additionally, the significant gap between the median home value and the FMR suggests that many rental units are priced above what voucher holders can afford. Therefore, unless investors can find smaller units or engage with local agents to secure off-market deals, entering this market may not be advisable at this time.

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.