Location: Springfield, IL | Metro: Springfield, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,300 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,860 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,600 |
| 5 Bedrooms | $3,016 |
| 6 Bedrooms | $3,378 |
| 7 Bedrooms | $3,648 |
| 8 Bedrooms | $3,830 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 62684 centers around a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1210, while the Census American Community Survey (ACS) reports the market rent at $2041. This discrepancy amounts to a difference of $831 per month, representing a 69% gap between the two figures.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the financial implications when accepting housing vouchers. Voucher tenants pay only a portion of their income towards rent, typically 30%, which means they would contribute approximately $41,758 annually ($318,876 * 0.3) or $3480 monthly to their housing costs. The government then covers the remaining balance up to the FMR limit of $1210, leaving landlords with a shortfall of $831 per month against the open-market rate of $2041. This shortfall can be substantial over time, reducing potential rental income and affecting overall investment yield.
In ZIP 62684, where the median home value is $318,876 and the median income is $139,196, the decision to accept Section 8 tenants involves careful consideration of the local economic context. With only 7.9% of residents classified as renters, the competition for rental properties is relatively low, but the financial impact of renting below market rates must be weighed against the stability and reliability of Section 8 payments. Landlords must decide whether the guaranteed income from Section 8 vouchers compensates for the lower rent compared to the volatile nature of the open rental market.
To summarize, the analysis reveals a stark contrast between the FMR and market rents, with the latter being significantly higher. This makes it essential for investors to understand the trade-offs involved in accepting Section 8 tenants, especially in light of the broader economic conditions in ZIP 62684.
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.