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 | $2,520 |
| 1 Bedroom | $2,670 |
| 2 Bedrooms | $3,020 |
| 3 Bedrooms | $3,880 |
| 4 Bedrooms | $4,440 |
| 5 Bedrooms | $5,150 |
| 6 Bedrooms | $5,768 |
| 7 Bedrooms | $6,229 |
| 8 Bedrooms | $6,540 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,020 | $370,571 | 0.81% | C |
| 3BR | $3,880 | $508,878 | 0.76% | D |
| 4BR | $4,440 | $654,955 | 0.68% | D |
| 5BR | $5,150 | $963,309 | 0.53% | F |
U.S. Census Bureau data (2024)
ZIP code 60712 encompasses the suburban neighborhood of Lincolnwood, Illinois, which is part of the Chicago metropolitan area. With a total population of 13,112, Lincolnwood stands out as a predominantly homeowner community, where only 16.2% of residents are renters. The median household income here is a robust $109,731, indicating a high standard of living and financial stability among its inhabitants. Reflecting this prosperity, the median home value in the area is also substantial at $542,189.
The rental economics in ZIP 60712 present an interesting opportunity for investors. The Fair Market Rent (FMR) for the area, set for fiscal year 2024, is $2,570. This figure represents the government's benchmark for housing affordability and is used to determine the payment standards for the Section 8 Housing Choice Voucher program. In contrast, the actual market rent, measured by Zillow's ZORI index, is slightly lower at $2,501. This suggests a narrow margin between the subsidized rates and market rates, making it particularly attractive for hands-off Section 8 operators who can rely on steady, government-backed rental income.
For hands-on investors looking to add value, the situation requires careful consideration. While the modest difference between the FMR and market rent might limit the potential for increasing rents beyond the subsidized level, there could still be opportunities for value-add through property improvements or strategic management practices. However, given the relatively low percentage of renters and the high median home value, the overall demand for rentals may be limited compared to areas with higher concentrations of renters or lower median incomes.
In summary, ZIP 60712 is well-suited for hands-off Section 8 operators due to the alignment between market and subsidized rents. For value-add investors, the focus should be on identifying properties with significant upside potential or those in need of upgrades that can justify slightly higher rents within the subsidized framework. Overall, the economic profile of Lincolnwood supports a stable investment environment for both types of investors.
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.