Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, IL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,650 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,550 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
To determine if you should buy in ZIP 60682 for Section 8 investments, follow this decision tree based on the provided data.
1) Does FMR $1680 (zip FY 2024) clear debt service on a N/A property?
Yes: If the Fair Market Rent (FMR) of $1680 is sufficient to cover the debt service of a property in ZIP 60682, then proceed to the next question. Debt service includes all mortgage payments, insurance, taxes, and maintenance costs. This is a critical first step because without covering these expenses, an investment would not be viable.
No: If the FMR does not cover the debt service, investing in ZIP 60682 is not advisable. The primary income source for Section 8 properties is the rent subsidy, which must be enough to sustain the property's operational costs.
It Depends: Without specific property data, it's impossible to definitively answer whether the FMR clears debt service. Evaluate your individual property costs against the $1680 FMR to make this determination.
2) Is market rent N/A (N/A) above, at, or below FMR?
Above: If the market rent exceeds the FMR of $1680, it indicates that there might be better opportunities outside of Section 8 housing. However, if you're strictly looking at Section 8 properties, this higher market rent could still provide a buffer against any unforeseen costs.
At: If the market rent is exactly at the FMR level, it means that the rental income will closely match the subsidy amount. This scenario requires careful management to ensure profitability but can still be feasible if the property has low operating costs.
Below: If the market rent is below the FMR, it suggests that Section 8 properties might be more competitive in this area. Landlords could benefit from the guaranteed income stream, even if it's slightly lower than the market rate.
It Depends: The lack of specific market rent data makes it challenging to compare directly with the FMR. Research local rental trends to see how they align with the FMR before making a decision.
3) Are N/A% renters + N/A-day DOM enough demand?
Yes: If the percentage of renters and days on market (DOM) indicate strong demand, then ZIP 60682 could be a good location for Section 8 investments. High demand typically means less vacancy and more stable income.
No: If the demand is weak, with a low percentage of renters and high DOM, consider other areas where demand is stronger. Weak demand can lead to prolonged vacancies, reducing potential income.
It Depends: Without specific percentages and DOM data, it's difficult to assess the demand accurately. Look into the local rental market dynamics and consider the competition from non-Section 8 rentals.
Based on the provided data, the viability of purchasing in ZIP 60682 for Section 8 investments hinges on the answers to these questions. Ensure you have all necessary figures to make an informed decision.
Data Sources: FMR data from HUD (2027).
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.