Location: Springfield, IL | Metro: Springfield, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
U.S. Census Bureau data (2024)
The analysis for ZIP 62561 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR in this ZIP code is set at $1190. However, the Census American Community Survey (ACS) indicates that the market rent is currently at $986. This creates a discrepancy of $204, which is approximately 20.7% lower than the FMR.
The disparity between these two figures means that landlords accepting Section 8 vouchers will be receiving a higher rent than what the open market dictates. Given that only 24.7% of residents are renters, the demand for rental properties might be relatively low, making it advantageous for landlords to participate in the Section 8 program. With a median home value of $201,657 and a median income of $81,646, the rental market could struggle to compete with homeownership, thus reducing the number of potential tenants willing to pay the FMR rate.
By accepting voucher tenants, landlords can capitalize on a steady income stream that exceeds the current market rate. This makes the ZIP 62561 a yield play, where landlords can benefit from a guaranteed rent that is above the typical market rate. Additionally, the higher rent received through Section 8 vouchers can help offset the costs associated with maintaining and managing rental properties, especially in a ZIP code where the overall economic conditions might not support higher rents.
In conclusion, the gap between the FMR and the actual market rent in ZIP 62561 presents an opportunity for landlords to achieve better yields while serving a population that might otherwise struggle to find affordable housing options. The data clearly shows that participating in the Section 8 program can provide financial benefits that align with the economic realities of the area.
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.