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 | $1,410 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,690 | $245,440 | 0.69% | D |
| 3BR | $2,170 | $279,784 | 0.78% | D |
| 4BR | $2,480 | $317,004 | 0.78% | D |
| 5BR | $2,877 | $345,192 | 0.83% | C |
U.S. Census Bureau data (2024)
Cicero, located just west of Chicago, is a dense, urban-suburban enclave characterized by a robust housing stock primarily consisting of brick bungalows and two-flats. Historically known as a manufacturing hub, the local economy still benefits from the presence of major industrial and logistics employers, including the large facility operated by Mars Inc., which remains a significant institutional anchor for the area. The neighborhood offers a gritty but practical living environment with direct access to the CTA Blue Line and major thoroughfares like Cermak Road, facilitating easy commutes into downtown Chicago.
From a numerical standpoint, Cicero presents a tight but viable spread for Section 8 investors. The FY2026 Fair Market Rent (FMR) for a 2BR unit sits at $1,490, while current market rents (Zillow ZORI) lag slightly at $1,376, creating a modest premium gap of $114 for voucher holders. Entry costs are accessible, with a median home value of $264,519 and a median 2BR sale price of $233,156. However, investors should note the slower liquidity, as the median days on market currently sits at 69 days, indicating a longer hold period may be required to exit.
The tenant pool is substantial, driven by a high renter share of 45.4% and a median household income of $70,842. This income level suggests that while the general population can afford market rates, the high density of renters points to consistent demand. Families are drawn to the area’s proximity to Morton College, a key community institution, and the availability of public transit options, which are critical for tenants relying on non-car transportation.
The Section 8 verdict for Cicero 60804 is positive, primarily centered on cash flow and stability. The $114 premium over market rent allows landlords to maximize the HUD payment ceiling, while the lower median home price entry ($233,156) compared to the city proper improves cap rates. This makes the area a solid target for investors seeking reliable, government-backed income rather than quick appreciation flips.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.