Location: Springfield, IL | Metro: Springfield, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,250 |
| 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)
ZIP code 62688, located within the Springfield, IL MSA, presents a unique profile when compared to typical ZIP codes in the same metropolitan area. With a Fair Market Rent (FMR) of $920 for fiscal year 2024, it stands notably lower than the market rent of $1,028, indicating a potential value pocket for landlords and investors who can offer affordable housing options. The discrepancy between the FMR and market rent suggests that there might be opportunities to attract tenants through subsidized programs while maintaining a competitive position in the rental market.
The median home value of $143,216 in ZIP 62688 is indicative of an area where property investments can be made at a lower cost compared to other parts of the Springfield, IL MSA. This lower home value could be a significant factor for small-portfolio investors looking to maximize their returns on investment by acquiring properties at a relatively cheaper price point.
With a renter share of 9.9%, ZIP 62688 has a slightly higher proportion of renters than what might be considered average for the broader Springfield, IL MSA. This increased renter population, combined with the lower home values, could signal a sweet spot for Section 8 housing. Landlords in this ZIP code should consider the potential benefits of participating in Section 8 programs, which can help stabilize cash flow and ensure occupancy rates remain high.
In summary, ZIP 62688 appears to be a value pocket within the Springfield, IL MSA, offering lower FMR and home values alongside a slightly elevated renter share. These factors make it an attractive option for landlords and investors interested in providing affordable housing solutions and capitalizing on the demand for rental properties.
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.