Location: Morgan County, IL | Metro: Springfield, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 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 classification of ZIP code 62670 hinges upon the analysis of both yield and stability factors. Yield-wise, the Federal Market Rent (FMR) of $980 for fiscal year 2024 contrasts sharply with the local market rent of $708. This suggests that properties in this area could potentially be rented at rates higher than the current market average, indicating a relatively high yield potential.
However, the median home value of $226,031 also plays a significant role in determining the overall profitability. Given the discrepancy between FMR and market rent, an investor might consider increasing rents closer to the FMR level, which would enhance returns but could also affect occupancy rates if the increase is substantial.
Moving onto stability, the ZIP code reveals that only 19.7% of residents are renters, suggesting a less stable rental market compared to areas with a higher percentage of renters. Additionally, the median household income stands at $78,750, which is a positive indicator for the ability of residents to afford higher rents, but it does not compensate for the low rental population percentage.
The lack of data on days on market (DOM) makes it difficult to assess the speed at which rental properties can be filled or the frequency of turnovers, which is crucial for understanding market stability. Without this information, we cannot fully evaluate the risk associated with vacancy periods.
In summary, ZIP 62670 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The modest percentage of renters points to a relatively stable occupancy but limits the potential for high yields through rapid property flips. The income level supports higher rent expectations, but the primary factor is the low rental population percentage, which dampens the high-yield potential. For small-portfolio investors, this ZIP code offers a moderate opportunity for consistent cash flow without the volatility often seen in high-renter-population areas.
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.