Section 8 Fair Market Rent (FMR) for ZIP 60707 - 2027

Investment Score for ZIP 60707

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	$1,550
1 Bedroom	$1,650
2 Bedrooms	$1,860
3 Bedrooms	$2,390
4 Bedrooms	$2,730
5 Bedrooms	$3,167
6 Bedrooms	$3,547
7 Bedrooms	$3,831
8 Bedrooms	$4,023

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,650	$146,385	1.13%	B
2BR	$1,860	$270,104	0.69%	D
3BR	$2,390	$376,413	0.63%	D
4BR	$2,730	$434,203	0.63%	D
5BR	$3,167	$479,885	0.66%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 60707 (Elmwood Park, IL) #### Section 8 Voucher Dynamics In ZIP code 60707, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1670 per month for 2026. This represents approximately 23.6% of the median household income in Elmwood Park, which stands at $84,799. The FMR is designed to reflect the average rent that a typical tenant would pay in the local housing market. However, it is important to note that the actual rents charged by landlords can be significantly higher. The FMR for a two-bedroom unit is $1670, while the Zillow median price for a similar property is $267,204. This implies a price-to-FMR ratio of 13.3x, indicating that the cost of purchasing a property is much higher relative to the rent it can generate under the FMR guidelines. This discrepancy can pose significant challenges for Section 8 voucher holders, who may find it difficult to locate rental properties that accept their vouchers due to the lower rent ceiling imposed by the FMR. #### Affordability & Renter Profile Elmwood Park has a population of 41,116, with 34.0% of residents being renters. The occupancy rate is quite high at 94.2%, suggesting that the rental market is relatively tight. Given that 34.0% of the population are renters, this indicates a substantial demand for rental units. However, the high occupancy rate also suggests that there may be limited supply, leading to upward pressure on rental prices. The median household income of $84,799 provides some context for the affordability of housing. With the FMR for a two-bedroom unit at $1670, which is 23.6% of the median income, it is clear that housing is generally affordable for the average resident. However, for those relying solely on Section 8 vouchers, the situation is more challenging. The FMR is often below what many landlords consider a fair rent, especially given the high median home values in the area. #### Investor Angle From an investor perspective, the ZIP code 60707 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1670, but the actual market rent is likely to be higher. The price-to-FMR ratio of 13.3x indicates that the cost of purchasing a property is significantly higher compared to the rent it can generate under FMR guidelines. This means that investors focusing exclusively on Section 8 tenants might face cash flow challenges if they are unable to secure rents above the FMR. However, the high occupancy rate and substantial renter population suggest that there is strong demand for rental properties. Investors who are willing to accept Section 8 vouchers and can manage their properties effectively may still find the ZIP code attractive. The key will be to ensure that the rental income, even if capped by FMR, is sufficient to cover mortgage payments, maintenance costs, and other expenses associated with property ownership. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Since the FMR is often below the market rent, investors should look for units where the landlord is willing to accept a lower rent. For example, a two-bedroom unit priced at $1670 or slightly above could be a good fit for Section 8 tenants. This approach would help maximize the number of potential tenants while ensuring that the property remains financially viable. 2. **Consider Multi-Family Properties**: Given the high occupancy rate and the substantial renter population, multi-family properties might offer better returns. A three-bedroom unit with an FMR of $2150 could potentially accommodate larger families, increasing the pool of eligible tenants. Additionally, multi-family properties can spread out fixed costs like property taxes and insurance over multiple units, improving overall profitability. 3. **Evaluate Long-Term Investment Potential**: While the immediate cash flow might be constrained by FMR guidelines, the long-term appreciation of property values in Elmwood Park could provide a solid return on investment. The median home value of $267,204 for a two-bedroom unit suggests that property values are likely to increase over time, making this ZIP code a potentially attractive option for buy-and-hold strategies. #### Bottom Line For Section 8-focused investors, ZIP code 60707 presents a mixed picture. On one hand, the high demand for rental units and the substantial renter population make it a potentially attractive market. On the other hand, the low FMR relative to market rents and the high price-to-FMR ratio indicate that cash flow might be challenging unless investors can find units priced below market rates or can leverage multi-family properties to improve returns. **Recommendation**: Hold. The ZIP code offers a stable rental market with strong demand, but the financial constraints imposed by FMR guidelines mean that investors should carefully evaluate their ability to manage cash flow before committing to purchases. For those already invested in the area, maintaining current properties and seeking opportunities to increase rents slightly above FMR could be a prudent strategy.

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.