Location: Springfield, IL | Metro: Springfield, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The real estate market in ZIP 62661 presents a balanced scenario for landlords and small-portfolio investors, anchored by a median home value of $197,127. The absence of percentage reductions in listings and the unspecified median days on market (DOM) indicate a stable market where neither buyers nor sellers hold significant pricing power. This stability suggests that rental rates and property values will likely remain consistent over the next 12 to 24 months.
On the rental side, the Fair Market Rent (FMR) for ZIP 62661 in fiscal year 2024 is set at $1,040, compared to the current market average of $907 according to the Census ACS. This gap signals potential upward pressure on rental rates as the market adjusts to meet the FMR benchmark. Landlords can expect modest increases in rental income as the market aligns with the FMR, enhancing cash flow without necessitating major renovations or improvements.
For long-term investors, the setup implies a realistic appreciation thesis tied to the gradual alignment of market rents with the FMR. As rental rates rise to match the FMR, the perceived value of properties will also increase, driving up property values. However, the lack of significant DOM changes or listing reductions indicates that appreciation will be moderate rather than rapid. Investors should anticipate an annual appreciation rate of approximately 2% to 3%, which is in line with historical trends and current economic conditions.
Additionally, the Section 8 housing voucher program provides further support for the rental market, ensuring a steady demand for affordable housing. Landlords who participate in Section 8 can benefit from guaranteed tenants and consistent rental income, although the program caps rent at the FMR level. This participation can offer a reliable investment strategy, particularly in areas where the FMR exceeds market rates.
In summary, the market in ZIP 62661 is poised for gradual growth, driven by the convergence of market rents with the FMR and moderate appreciation in property values. Landlords and investors should focus on maintaining properties and positioning them competitively as rental rates adjust, leveraging the stability and support of the Section 8 program to secure long-term investments.
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.