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 | $1,260 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,510 | $249,377 | 0.61% | D |
| 3BR | $1,940 | $339,230 | 0.57% | F |
| 4BR | $2,220 | $486,133 | 0.46% | F |
| 5BR | $2,575 | $636,910 | 0.4% | F |
U.S. Census Bureau data (2024)
The ZIP code 60653 in Chicago, IL, presents a dynamic rental market with strong implications for both landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area is set at $1400 for fiscal year 2024, indicating the government's benchmark for affordability. However, the actual market rent, as measured by Zillow's ZORI, stands significantly higher at $2,049, suggesting that the private market values properties above the FMR.
The low price-cut share of 0.2% reveals that landlords are not frequently lowering their rents to attract tenants, which is a positive sign for maintaining rental income levels. This statistic, combined with the lack of available data on days on market (DOM), implies that the market is tight, with little to no inventory backlog. In essence, homes that are listed for rent are quickly occupied, pointing towards a scenario where demand outpaces supply.
A median home value of $320,756 places the neighborhood in a middle to upper-middle class bracket, supporting a stable investment environment. Given that 69.2% of residents are renters, there is a pronounced long-term housing pressure in the area. This high renter share indicates a sustained need for rental properties, as a significant portion of the population cannot afford to purchase homes. It also suggests that any increase in interest rates or other financial barriers to homeownership could further shift the balance towards renting, thereby increasing the demand for rental units.
The interplay between these factors—market rent exceeding FMR, minimal price cuts, and a substantial renter population—creates a robust rental market. For landlords and investors, this means a steady stream of potential tenants willing to pay above the fair market rate. However, it also underscores the importance of maintaining competitive rental offerings to stay ahead in a market where demand consistently exceeds supply.
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.