Section 8 Fair Market Rent (FMR) for ZIP 60701 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 60701, located within the Chicago-Joliet-Naperville County area, are driven by the SAFMR (Small Area Fair Market Rent) rates set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for fiscal year 2024 is $1680. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this area.

A landlord's income from a Section 8 voucher is determined by subtracting the tenant's portion of the rent and adding any applicable utility allowances. The tenant is generally required to contribute 30% of their adjusted monthly income towards rent. If the tenant's income is $1500 per month, their contribution would be $450 (30% of $1500).

The remaining balance is covered by the voucher. In this case, the voucher would cover $1230 of the $1680 SAFMR. However, if the local market rent exceeds the SAFMR, the landlord does not receive additional funds from the voucher program. Instead, the landlord must either reduce the rent to match the SAFMR or accept the reimbursement gap as a loss.

Utility allowances vary based on the location and type of utilities. For ZIP 60701, the allowance typically covers electricity, gas, water, and sewage. These allowances can add up to several hundred dollars per month, depending on the household size and specific utility costs in the area. Assuming an average utility allowance of $200, the total reimbursement a landlord might expect from the voucher program would be $1430 ($1230 for rent + $200 for utilities).

This means that for a two-bedroom apartment with a market rent higher than the SAFMR, there would be a reimbursement gap. Conversely, if the market rent is lower than the SAFMR, the landlord could see a surplus. Given the SAFMR of $1680 and assuming a typical market rent scenario where it aligns closely with the SAFMR, the reimbursement gap or surplus would be minimal. Landlords should aim to set their rents close to the SAFMR to avoid significant financial gaps while ensuring they comply with the program's regulations.

To summarize, in ZIP 60701, the SAFMR for a two-bedroom unit is $1680. A landlord can expect a total reimbursement of around $1430 when considering the tenant's contribution and utility allowances. The actual reimbursement gap or surplus will depend on the local market rent, which should be researched for the most accurate comparison.

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.