Location: Springfield, OH | Metro: Springfield, OH MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
U.S. Census Bureau data (2024)
ZIP 43010, located within the Springfield, OH MSA, presents itself as a solid cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for FY 2024 is set at $1060, while the market rent stands at $1650. This creates a significant spread of $590 per unit, which can be leveraged to ensure steady cash flow.
The median home value in ZIP 43010 is $183,661. Although this figure is lower compared to other areas, it does not necessarily indicate a lack of potential for appreciation. However, given the absence of specific data on price-cut shares and days on market (DOM), it's difficult to categorize this area purely as an appreciation play. Therefore, focusing on its role as a cash-flow anchor is more prudent based on the available data.
With a renter share of 11.5%, there is a notable presence of tenants who might qualify for Section 8 housing assistance. The median income of $68,500 suggests that there is a sufficient economic base to support a rental market, including those who rely on government subsidies. Landlords and small-portfolio investors should take advantage of the guaranteed income from the Section 8 program, which can provide stability in the face of economic fluctuations.
To maximize the benefits of ZIP 43010 as a cash-flow anchor, investors should consider properties that are likely to qualify for the Section 8 program. This includes ensuring that units meet the necessary physical condition standards and are priced competitively within the FMR guidelines. By doing so, they can secure long-term, reliable tenancy and avoid the risks associated with higher market volatility.
In conclusion, ZIP 43010 is best suited as a cash-flow anchor within a Section 8 portfolio strategy due to the substantial difference between FMR and market rents. This allows for predictable and stable returns, which can be crucial for maintaining financial health in a diverse investment portfolio.
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.