Location: Springfield, IL | Metro: Springfield, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
In ZIP 62515, the gap between the Fair Market Rent (FMR) and the market rent highlights a significant opportunity for landlords and small-portfolio investors. For fiscal year 2024, the FMR for a two-bedroom apartment in Buffalo, IL, is set at $1,200. In contrast, the Census American Community Survey (ACS) reports the market rent for the same unit type at $636. This discrepancy amounts to a difference of $564 per month, or approximately 88.6%, which underscores the financial incentive for landlords to participate in the Section 8 program.
The higher FMR relative to the market rent means that voucher tenants can pay significantly more than what the open market dictates. Given that only 20.1% of residents are renters and the median household income is $62,222, the demand for affordable housing is likely strong. This makes ZIP 62515 a prime location for a yield play, where landlords can benefit from the higher FMR payments while providing affordable housing options to tenants.
The analysis is anchored in the broader context of the local economy and housing market. With the median home value being N/A, it suggests that homeownership may be less prevalent or that there isn't sufficient data to establish a clear median. However, the median income figure indicates that many residents might find it challenging to afford market-rate rents, making the Section 8 program even more attractive.
Landlords should note that the FMR includes all utilities. If a landlord opts not to cover utilities, they must adjust the rent accordingly. Nonetheless, the substantial gap between FMR and market rent ensures that landlords can still achieve a favorable yield compared to open-market rates.
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.