Location: Springfield, IL | Metro: Springfield, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 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)
The market in ZIP 62520 is characterized by a rental environment that is distinctly below the Fair Market Rent (FMR) benchmark set by the Department of Housing and Urban Development for fiscal year 2024. The FMR for the area is established at $1190, yet the actual market rent, as per the latest Census American Community Survey data, stands at $850. This discrepancy suggests that the local rental market is experiencing conditions where supply may be exceeding demand, leading to lower-than-expected rental rates.
A median home value of $233,312 provides insight into the overall cost of homeownership within the ZIP code. While this figure alone doesn't directly indicate the balance between supply and demand, it can be considered alongside the rental trends to understand the broader housing landscape. Lower rental prices could potentially attract more buyers into the market, especially if they perceive the area as offering affordable living options.
The 8.1% renter share indicates a relatively low proportion of residents who are renters compared to homeowners. This statistic points to a community that leans more towards homeownership, which can imply less immediate pressure on rental markets but also suggests a potential for long-term housing pressures if the trend towards renting increases. As more individuals seek rental properties due to economic factors, such as job mobility or changes in household size, the existing low renter share could shift, putting upward pressure on rents and possibly increasing competition among landlords.
In summary, ZIP 62520 presents a rental market where current supply appears to meet or exceed demand, reflected in the lower market rent compared to the FMR. However, the dynamics of housing pressure are influenced by the relatively low renter share, which could change over time, impacting the rental market's trajectory. Landlords and small-portfolio investors should closely monitor these trends and consider how they might evolve in response to broader economic and demographic shifts.
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.