Location: Springfield, IL | Metro: Springfield, IL MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $133,995 | 0.93% | C |
| 3BR | $1,650 | $207,274 | 0.8% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 62704, Leland Grove, IL, in fiscal year 2024 is set at $1,080. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program, which is also known as the Housing Choice Voucher Program. It's important to note that this is not the actual rent you will receive; rather, it's the ceiling for what you can charge.
In comparison, the local Zillow Observed Rent Index (ZORI) for ZIP 62704 is currently at $1,125. This indicates that the market rent slightly exceeds the FMR, suggesting that if you're considering a Section 8 rental, you'll be charging less than the average market rate. However, the stability and reliability of payments through the Section 8 program can make up for the lower rent amount.
The demand for rental properties in Leland Grove is strong, with 38.0% of residents being renters. This high percentage means there is a significant pool of potential tenants who might be interested in your property, especially those who qualify for the Section 8 program. The median household income in the area is around $180,735, which suggests that while some residents can afford higher rents, there is still a substantial need for affordable housing options.
To ensure the viability of your investment, you should verify that the condition of your property meets the Housing Quality Standards (HQS) required by the Section 8 program. These standards ensure that the home is safe, decent, and sanitary for tenants. Failure to meet these standards could result in your property not being approved for the program, leading to lost opportunities for stable, long-term tenants.
In summary, while the FMR of $1,080 is lower than the current market rent of $1,125, the steady stream of income and the high tenant demand make Section 8 rentals a worthwhile consideration. Before proceeding, confirm that your property complies with the necessary HQS to avoid any issues with program approval.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.