Chicago ARO Program: The Ultimate Guide

Everything you need to know about the Affordable Requirements Ordinance—Chicago's path to affordable apartments in luxury buildings.

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Source-checked guide: We compile information from official sources to help residents navigate housing options. Always verify current requirements at chicago.gov/doh.

What Is the ARO Program?

The Affordable Requirements Ordinance (ARO) is a Chicago city law that requires developers building residential projects with 10 or more units to include affordable housing—or pay into the city's Affordable Housing Opportunity Fund.

In practice, this means that when a developer builds a new luxury apartment building in Lincoln Park, the West Loop, or other hot neighborhoods, a percentage of those units must be rented at below-market rates to income-qualified households.

The ARO Formula

  • 1Developer proposes a project with 10+ residential units
  • 2City requires 10-20% of units be affordable (varies by location & incentives used)
  • 3Affordable units target households at 60% or 80% of Area Median Income
  • 4You apply directly to the building when units are available

Why Chicago Uses ARO Units

Chicago's ARO program was established in 2003 and significantly strengthened in 2015 and 2021 to address a growing affordable housing crisis. The goal is to ensure that economic diversity exists in all neighborhoods—not just lower-income areas.

Mixed-Income Communities

ARO prevents economic segregation by placing affordable units in the same buildings as market-rate apartments.

Access to Opportunity

Residents gain access to neighborhoods with better schools, transit, jobs, and amenities.

Private Development Funded

Unlike public housing, ARO units are built and maintained by private developers—no direct taxpayer cost.

Serves Working Families

Targets moderate-income households (60-80% AMI) often overlooked by other programs.

Rental vs. Ownership ARO Units

While most people think of ARO as an apartment rental program, it also includes homeownership opportunities—condos and townhomes sold at below-market prices.

ARO Rentals

  • Most common ARO unit type
  • Lease terms vary by property and program
  • Rent set at affordable rate (not income-based)
  • Income recertification requirements vary by program
  • Apply directly to building management

ARO Ownership

  • Condos/townhomes at below-market prices
  • Build equity through homeownership
  • Less common—limited availability
  • Resale restrictions may apply
  • Often requires homebuyer counseling

Where ARO Units Are Located in Chicago

ARO units are concentrated in neighborhoods with the most new development. Because ARO is tied to construction, you'll find the most units in hot real estate markets where developers are building.

Lincoln Park

Check property directory

West Loop / Fulton Market

Check property directory

River North

Check property directory

South Loop

Check property directory

Logan Square

Check property directory

Bronzeville

Check property directory

Hyde Park

Check property directory

Pilsen

Check property directory

Pro Tip: Finding ARO Buildings

New ARO listings are published through Chicago's Department of Housing. You can also search for buildings directly in our current ARO listings page, which we update regularly with available units.

Affordable Apartments in Fulton Market & West Loop

Fulton Market is one of the fastest-growing parts of Chicago, and the West Loop's heavy development pipeline means a steady supply of ARO units inside brand-new luxury buildings. Expect studios and 1-bedrooms at the 60% AMI tier, and larger units sometimes available at 80% AMI. Most buildings are walking distance to the Green and Pink lines and to Restaurant Row.

Check current openings on our Chicago ARO listings page and confirm your AMI tier with the Chicago income limits guide before applying.

Affordable Housing in River North

River North has a moderate supply of ARO units in high-rise rental towers near the Brown, Purple, and Red lines. Because demand is high, units list and lease quickly — applying the same week a unit posts gives you the best shot. Most River North ARO inventory is at the 60% AMI tier, with mixed-income developments occasionally releasing 80% AMI units.

Use our ARO qualification checklist to make sure your paperwork is ready before a River North unit drops.

Luxury Affordable Apartments in Chicago

"Luxury affordable" isn't a contradiction — ARO units sit inside the same Class A buildings as market-rate apartments, with identical finishes, rooftop decks, fitness centers, and concierge service. By law, developers cannot differentiate ARO units from market-rate units in the same project.

Browse luxury buildings with affordable inventory on our ARO listings page, or read the full Chicago housing lottery guide to understand how units are awarded when demand exceeds supply.

How Developers Participate in ARO

Developers have several options to meet their ARO requirements. Understanding this helps explain why ARO units appear in some buildings but not others.

On-Site Units (Best for Renters)

Developer includes affordable units within the same building. This is the most common option and gives you access to all building amenities.

Off-Site Units

Developer builds affordable units in a different location, usually nearby. Less common but may offer more units in some cases.

In-Lieu Fee (No Units Created)

Developer pays into Chicago's Affordable Housing Opportunity Fund instead of building units. This doesn't create any units in the building, but funds affordable housing elsewhere.

Pros & Cons of ARO Apartments

Advantages

Luxury Amenities

Access to same amenities as market-rate residents: fitness centers, rooftop decks, package lockers, in-unit laundry

Desirable Locations

Units in neighborhoods with great transit, restaurants, and employment opportunities

Property-Specific Availability

Availability, waitlists, lotteries, screening criteria, and renewal requirements vary by property and by the affordability program governing the unit.

Apply Directly

You work directly with the building—no government agency middleman

Screening Criteria

Credit and background screening criteria vary by property; ask the leasing office for its written requirements.

Lease Terms

Lease terms vary by property and by the affordability program governing the unit.

Considerations

Income Caps

Income limits and renewal rules depend on the affordability program governing the unit

Income Verification

Required documents and verification procedures vary by property and program

Limited Unit Types

Fewer ARO units available, especially for larger families needing 3+ bedrooms

Competition

Desirable units get applications quickly—speed matters

Fixed Rent (Not Income-Based)

Unlike Section 8, rent is set at the affordable rate, not 30% of your income

Asset Limits

Some programs check savings and assets, not just income

Common ARO Misconceptions

"ARO units are lower quality than market-rate units"

Actually: ARO units are identical to market-rate units in the same building. Developers cannot differentiate—same finishes, same amenities, same everything.

"Only unemployed people qualify for ARO"

Actually: ARO is designed for working individuals and families. Under the 2026 limits (effective May 1, 2026), a single person earning up to $68,050/year or a family of four earning up to $97,200/year can qualify at the 80% AMI tier.

"There's a years-long waitlist for ARO"

Actually: There is no central City waitlist for ARO. Each building manages its own interest list, waitlist, or lottery, so wait times depend on the property.

"You can only live in ARO units temporarily"

Actually: Renewal and income-recertification rules depend on the building's affordability requirements. Ask the leasing office how recertification works before you sign.

"ARO is only for renters"

Actually: The ARO program includes both rental units AND ownership opportunities (condos/townhomes at below-market prices).

"You need perfect credit to qualify"

Actually: Each property sets its own credit and background screening. Ask the leasing office for its written screening criteria before paying an application fee.

Next Steps: How to Get an ARO Apartment

Check Eligibility

See the 2026 income limits and requirements

View Limits

Browse Listings

See available ARO apartments now

View Listings

Apply

Step-by-step application guide

Start Guide

Official City Resources

Ready to Find Your ARO Apartment?

Check if you qualify, browse current listings, and start your application today.

Check EligibilityBrowse Listings

Featured ARO neighborhoods & buildings

Detailed guides to specific Chicago neighborhoods and luxury buildings participating in the ARO program.

Using the ARO: a renter's playbook

Concrete steps, questions, and pitfalls for applying building by building.

Step-by-step: how a renter actually gets an ARO apartment

There is no central ARO application. Each building runs its own affordable leasing, so the workflow is repeated building by building.

  1. 1

    Estimate your AMI tier

    Add up gross (pre-tax) annual income for everyone who will live in the unit, then compare it to the City's table for your household size. Write down which tiers you fall under.

  2. 2

    Build a shortlist from the City dataset

    Use our listings directory (drawn from the City's ARO dataset) to pick 5–10 buildings in areas you can realistically live. Note each building's phone number and manager.

  3. 3

    Call or email each leasing office

    Ask specifically for the affordable or ARO leasing contact — general leasing staff may only know market-rate availability. Use the questions below.

  4. 4

    Get on every list you qualify for

    If a building has no vacancy, ask whether it keeps an interest list or waitlist and how to join. Record the date and the name of the person you spoke with.

  5. 5

    Submit a complete application when a unit opens

    Incomplete files are the most common reason applications stall. Have income, ID, and household documents ready before you call back.

  6. 6

    Complete income certification

    The property verifies your income against the unit's AMI tier. Respond to document requests quickly and keep copies of everything you send.

  7. 7

    Review and sign the lease

    Confirm the rent, the AMI tier, what utilities are included, and when your income will be recertified.

Browse City ARO properties2026 income limits

Questions to ask a leasing office

“Do you have any affordable (ARO) units available now, or an interest list?”
Being in the City dataset does not mean a unit is vacant. This one question saves the most time.
“What AMI percentage are your affordable units set at, and for which bedroom sizes?”
A building can have units at different tiers. You need a unit at or above your tier.
“Is there a minimum income requirement for the affordable units?”
Many buildings require income of some multiple of rent. You must fall between the minimum and the AMI maximum.
“What is the monthly rent, and which utilities or fees are extra?”
Parking, amenity, and utility charges can change what you actually pay each month.
“Which documents do you need, and how recent must they be?”
Properties often want recent pay stubs and bank statements. Asking avoids resubmitting stale paperwork.
“Do you accept Housing Choice Vouchers?”
If you have a voucher, confirm it up front. Chicago law prohibits source-of-income discrimination.
“How and when is income recertified after move-in?”
Your rent and eligibility are reviewed periodically, so you should know what to expect.

Common mistakes

  • Using take-home pay instead of gross income. Properties count income before taxes and deductions.
  • Leaving out a household member's income (an adult child's job, a partner's side work, benefits).
  • Assuming a building listed by the City has a unit available today.
  • Asking general leasing staff about "cheaper units" instead of asking for the ARO or affordable contact.
  • Missing the minimum-income requirement: being under the AMI cap is necessary but not sufficient.
  • Letting documents go stale between the first call and the actual application.
  • Not keeping a log of who you spoke with and when, so follow-ups go nowhere.

What happens after you submit documents

  1. 1

    File review

    The property checks that your application is complete. Missing items are usually requested by email or phone — reply the same day if you can.

  2. 2

    Income verification

    Staff may contact employers or ask for more statements to confirm income. Unusual income (gig work, cash tips, seasonal jobs) often needs extra documentation.

  3. 3

    Standard screening

    Most buildings also run their normal rental screening. Ask the property what their criteria are.

  4. 4

    Eligibility decision

    You are approved, denied, or asked for more information. If denied, ask in writing for the reason and whether there is an appeal or reconsideration process.

  5. 5

    Lease signing and move-in

    Review the lease for the AMI tier, rent, and recertification schedule before signing.

Timing varies by property. Ask the leasing office how long review usually takes at their building and when you should follow up.

City of Chicago ARO program

Related Guides & Next Steps