Location: Springfield, IL | Metro: Springfield, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
U.S. Census Bureau data (2024)
The potential risks for landlords investing in ZIP 62536 through the Section 8 program include significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance. The Fair Market Rent (FMR) for ZIP 62536 in fiscal year 2024 is set at $1180, which is lower than the typical market rent, leading to higher tenant turnover as voucher holders often cannot afford the difference between the FMR and market rates. This discrepancy creates an unstable rental environment where tenants might frequently move out, seeking more affordable housing options.
Vacancy exposure is another critical concern. With no data available on the average days on market (DOM), it's difficult to predict how long properties might remain vacant. However, given the lower FMR compared to likely market rents, landlords can expect longer periods of vacancy as fewer tenants qualify for the rental amount. This extended vacancy period directly impacts cash flow, as properties may sit empty for months awaiting a suitable voucher holder.
The deferred maintenance risk is also notable. With a typical home value of $278,741 and a median income of $95,809, many residents may struggle to maintain their homes at optimal levels due to financial constraints. Landlords must be prepared to handle increased maintenance costs, ensuring that properties comply with housing quality standards required by the Section 8 program. This includes regular inspections and repairs, which can be financially burdensome if not planned for.
Despite these risks, the high renter density in ZIP 62536 presents an opportunity. With 4.9% of the population identified as renters, there is a substantial pool of potential tenants who may have Section 8 vouchers. High renter density typically correlates with higher demand for subsidized housing, making it easier to find qualified voucher holders. This demand helps mitigate some of the risks associated with vacancy and turnover, as landlords are more likely to find tenants willing to pay the FMR.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.