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 | $1,680 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,580 |
| 4 Bedrooms | $2,950 |
| 5 Bedrooms | $3,422 |
| 6 Bedrooms | $3,833 |
| 7 Bedrooms | $4,140 |
| 8 Bedrooms | $4,347 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,010 | $279,530 | 0.72% | D |
| 3BR | $2,580 | $340,412 | 0.76% | D |
| 4BR | $2,950 | $423,492 | 0.7% | D |
| 5BR | $3,422 | $481,253 | 0.71% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 60655 in Chicago, IL, reveals a favorable rental environment. The HUD Fair Market Rent (FMR) for FY 2024 stands at $1,600, which is notably higher than the market rent of $1,532 reported by the Census ACS. This indicates that voucher tenants will generally cashflow at the FMR level, providing a positive financial outcome for landlords.
To further understand the investment potential, consider the median home value in the area, which is $317,746. Using this figure, we can calculate the rent-to-price ratio. With an average monthly rent of $1,532, the annual rent would be approximately $18,384, leading to a rent-to-price ratio of about 5.8%. This ratio suggests that rental income represents a significant portion of the property's value, making it attractive for investors focused on cash flow.
The data does not provide a specific median Days on Market (DOM) or the percentage of price cuts made, but these metrics typically do not significantly impact the decision-making process for Section 8 investors. The primary focus is on ensuring that rents are competitive and that properties meet the necessary standards to attract voucher tenants.
In conclusion, the strongest investor angle in ZIP 60655 is cashflow. Given the favorable comparison between HUD FMR and market rent, combined with the relatively high rent-to-price ratio, this area presents a solid opportunity for landlords and small-portfolio investors looking to maximize their financial returns.
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.