A New Three-Flat Is Approved Near Chicago’s Medical District. Here’s Why Buyers Should Pay Attention
TRI-TAYLOR— A vacant lot near the Illinois Medical District is getting three new homes, but the project also highlights a housing type Chicago buyers should understand.
The city issued a building permit on October 22 for a new three-story, three-unit residential building at 919 S. Bell Avenue in Tri-Taylor. The permit lists a reported construction cost of $499,000.
Whether the finished property will eventually be sold, rented, or held by the owner is not yet known.
For buyers and small investors, however, the project is a useful reminder of why Chicago’s traditional two-flats, three-flats, and four-flats occupy an interesting middle ground between a single-family home and a larger apartment building.
What’s Being Built at 919 S. Bell?
Plans call for a three-story frame building with three dwelling units, including one Type A accessible unit.
The permit also mentions a partial rooftop deck. There is no basement and no parking included in the current permit.
The property sits on the only vacant lot on its block. Real estate records cited by Chicago YIMBY show the lot was purchased in 2025 for $210,000.
The site is also near two Blue Line stations. The Western station is about five blocks away, while the Illinois Medical District station is slightly farther east.
That places the property near the Illinois Medical District, UIC, Tri-Taylor, and the broader Near West Side.
Why Chicago Three-Flats Are Different
A three-flat is exactly what it sounds like: one residential building containing three separate dwelling units.
For some buyers, that creates an opportunity a condo or single-family home cannot offer.
An owner could potentially live in one apartment while renting the other two, depending on the property, leases, financing, and applicable rules. Rental income may help offset some of the property's monthly expenses, while the buyer owns the entire building rather than one condo unit.
That does not make a three-flat automatically a good investment.
It means buyers need to evaluate the purchase as both a home and a small rental property.
The Owner-Occupant Math Matters
A buyer considering a three-flat should look beyond the purchase price.
Important questions include:
What rent could each additional unit realistically command?
Who pays gas, electricity, water, and other utilities?
What will property taxes and insurance cost?
How much should be reserved for repairs and vacancies?
Are there separate heating and electrical systems?
What major building components may need replacement?
If tenants are already in place, what do the leases actually say?
Financing also works differently from buying a conventional single-family home.
FHA treats one- to four-unit properties as eligible residential property when used as the borrower’s principal residence, subject to program requirements. For a three- or four-unit property, FHA also applies a self-sufficiency rental income test, meaning the projected rental income has to support the property under HUD’s calculation.
Other conventional loan programs have their own requirements, so buyers should speak with a lender who regularly finances Chicago 2-4 unit properties before assuming the rental income will qualify exactly as expected.
Legal Unit Count Is Just as Important as the Rent
This matters especially when buying an older Chicago multi-unit.
A property marketed as a “three-flat” is not enough by itself. Buyers should verify that the building is legally recognized for the number of units being sold.
Chicago requires a Certificate of Zoning Compliance when residential property with five or fewer dwelling units is transferred, except for condominiums and cooperatives. The certificate confirms the number of dwelling units that are legal under the Chicago Zoning Ordinance.
That is especially important with older buildings where basements, attics, or rear units may have been converted over time.
At 919 S. Bell, the situation is more straightforward because the new permit itself calls for three dwelling units.
Why the Location Could Appeal to Renters and Owner-Occupants
Tri-Taylor sits immediately west of the Illinois Medical District, which puts parts of the neighborhood near hospitals, universities, medical employment, CTA service, and the Near West Side.
The CTA’s Illinois Medical District Blue Line station provides 24-hour Blue Line service, with entrances at Paulina, Ogden, and Damen and connections to multiple bus routes.
For a small multifamily buyer, location can matter twice.
You need to decide whether you would want to live there, but also whether the other units would make sense for future renters.
Proximity to employment centers and transportation can therefore become part of the investment analysis, alongside rent, condition, taxes, and financing.
What Buyers Should Watch at 919 S. Bell
For now, there is nothing to buy.
The permit authorizes construction, but no public sale price, rental rates, completion date, or future listing strategy has been announced. Chicago YIMBY specifically notes that it is unknown whether the residences will eventually be offered for sale or used as rentals.
That distinction matters.
The story today is not that three new homes have hit the market. It is that a new three-flat has been permitted on a previously vacant Tri-Taylor lot.
If the completed building eventually comes to market as a whole three-unit property, it could become the type of opportunity owner-occupant investors watch closely.
Until then, its bigger value is showing that Chicago’s familiar small-multifamily housing model is still being built today.
Considering a Two-Flat, Three-Flat, or Small Investment Property?
Buying a Chicago multi-unit requires a different review than buying a condo or single-family home.
The Cory Tanzer Group at Option Premier helps buyers and small investors evaluate pricing, rental potential, building condition, neighborhood demand, financing considerations, and comparable sales across Chicago.
For an owner-occupant, the goal is not simply finding a building with extra units.
It is finding a property where the home and the numbers both make sense.
Stay Connected
Ranked among the top 1% of real estate teams in the Chicagoland market, The Cory Tanzer Group at Option Premier is recognized for proven sales performance, neighborhood expertise, and consistent results across Chicago and the surrounding suburbs.
In the 2026 RealTrends Verified rankings, based on 2025 sales data, the team completed 181 transaction sides representing $79.28 million in sales volume. The Cory Tanzer Group ranked No. 13 in Illinois by transaction sides, No. 20 in Illinois by sales volume, No. 270 nationally by transaction sides, and No. 439 nationally by sales volume.
The team also earned The CARLY, the highest honor for Platinum Sales Dollars and Platinum Units Sold, at the Chicago Association of REALTORS® Sales Awards.
Led by Cory Tanzer, the team helps buyers, sellers, investors, landlords, and renters navigate real estate across Downtown Chicago, the North Shore, and the Western Suburbs, with local expertise in University Village, University Commons, South Loop, West Loop, Little Italy, Pilsen, and surrounding Chicagoland communities.
Connect with The Cory Tanzer Group at Option Premier for trusted local market insight, personalized guidance, and a proven strategy for your next Chicago real estate move.
