Location: Springfield, IL | Metro: Springfield, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 62530 reveals a significant gap between the Fair Market Rent (FMR) set at $1110 for fiscal year 2024 and the actual market rent, which stands at $1034 according to the latest Census ACS data. This means that the FMR is $76 higher than the market rent, representing an increase of approximately 7.35%. In such a scenario, where the FMR exceeds the market rent, it becomes evident that voucher tenants can be a lucrative investment opportunity for landlords and small-portfolio investors.
The higher FMR allows landlords to receive a payment that is closer to their desired rental income, even if the actual market conditions suggest lower rates. This makes the area attractive for a yield play, as landlords can expect to receive steady income that is slightly above the typical market rate. The 19.3% of renters in this ZIP code indicates a moderate reliance on rental properties, while the median home value of $152,533 and median income of $82,188 provide additional context on the economic landscape. These figures suggest that while homeownership is prevalent, there remains a substantial portion of the population that requires rental housing, potentially benefiting from the Section 8 program.
The discrepancy between FMR and market rent means that landlords can participate in the Section 8 program without significantly reducing their rental income. For investors looking to maximize returns, this ZIP code presents a favorable environment where the government's subsidy through vouchers effectively bridges the gap between market conditions and landlord expectations, making it a strategic choice for those interested in long-term, stable rental yields.
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.