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 | $1,340 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,070 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,610 | $113,023 | 1.42% | A |
| 3BR | $2,070 | $139,829 | 1.48% | A |
| 4BR | $2,360 | $170,838 | 1.38% | A |
| 5BR | $2,738 | $215,863 | 1.27% | A |
U.S. Census Bureau data (2024)
The median income in ZIP 60827, which encompasses Riverdale, Illinois, stands at $37,217. Given this figure, it becomes evident that affording the $1,281 market rate rental, known as ZORI, is challenging for the average household. This difficulty is further highlighted when comparing the ZORI to the Fair Market Rent (FMR), which is set at $1,400 for the fiscal year 2024.
The disparity between the median income and both the ZORI and FMR indicates a significant affordability gap for residents. With nearly 60% of the 24,713 population being renters, this gap suggests intense competition among landlords to attract tenants who can pay the market rate. The struggle to find renters willing and able to pay $1,281 per month could lead to increased reliance on alternative sources of funding, such as Section 8 vouchers.
Section 8 vouchers, which provide assistance up to the FMR of $1,400, offer a solution to the affordability issue faced by many households. However, landlords must weigh the benefits of accepting these vouchers against the potential drawbacks, including the administrative burden and the requirement to meet certain housing quality standards.
For landlords considering their strategy, the key takeaway is that while cash-paying tenants might be less common due to the high cost of living relative to income, Section 8 vouchers present a viable option. Accepting vouchers ensures a steady stream of rental income, albeit at a slightly higher rate than the ZORI but still below the FMR. Landlords should assess the local demand for subsidized housing and the willingness of residents to apply for vouchers, as this can influence the overall success and profitability of their investment properties in ZIP 60827.
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.