Section 8 Fair Market Rent (FMR) for ZIP 60928 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor considering ZIP 60928 might raise several valid concerns regarding the feasibility of renting properties under the Section 8 program. Here's a detailed analysis addressing those points:

• Will FMR $920 (metro FY 2026) cover the mortgage on a $148,720 home? The Fair Market Rent (FMR) of $920 in ZIP 60928 is a critical figure for determining rental income. However, it must be compared against the mortgage payments required for a home valued at $148,720. While the data does not provide a direct comparison between FMR and mortgage costs, it is important to note that mortgage payments depend on factors such as interest rates and loan terms. Assuming a typical 30-year fixed-rate mortgage at an average rate, the monthly payment for a $148,720 home would likely exceed the FMR. This suggests that relying solely on FMR might not fully cover mortgage expenses, necessitating additional income sources or careful financial planning.
• Is there enough renter demand at 12.7%? The percentage of renters in ZIP 60928 stands at 12.7%. This figure is relatively low, indicating a smaller pool of potential tenants compared to areas with higher rental rates. Despite this, it is crucial to consider the total population and the number of households in the area. If the total number of households is substantial, even a small percentage can represent a significant number of renters. Additionally, the demand for affordable housing under the Section 8 program could still be strong, as it serves a specific demographic. To fully assess the viability of rental demand, further investigation into the local housing market trends and tenant preferences is necessary.
• Will vouchers keep pace with $817 market rents? The market rent in ZIP 60928 is reported at $817. This amount is lower than the FMR but still represents a significant portion of the rental income. The concern over whether voucher amounts will keep up with market rents is valid, especially if there are inflationary pressures or changes in the housing market. According to the data, the voucher amount is expected to match the FMR, which is $920. This indicates that vouchers should adequately cover the market rent of $817, providing landlords with a stable source of income. However, it is essential to monitor any adjustments in voucher policies or economic conditions that could affect this balance.

In conclusion, while ZIP 60928 presents some challenges for landlords and small-portfolio investors participating in the Section 8 program, the data suggests that the FMR is sufficient to cover market rents. However, the mortgage coverage and overall rental demand require closer examination to ensure financial stability and success in this market.

Data Sources: FMR data from HUD (2027). 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.