Location: Springfield, IL | Metro: Springfield, IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
The potential pitfalls of investing in Section 8 properties in ZIP code 62736 in Unknown, IL, include significant tenant turnover, which can be higher than average due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $1070 for FY 2024. This mismatch may lead to frequent changes in occupancy, increasing the administrative burden on landlords.
Vacancy exposure is another concern. The days on market (DOM) figure is currently unavailable, but a prolonged period before securing a tenant could result in lost rental income. Landlords must prepare for such scenarios to avoid financial strain during vacancies.
Deferred maintenance is also a risk factor. With the typical home value and median income figures not available, it's challenging to assess the financial health of residents and their ability to cover maintenance costs. However, landlords should anticipate that tenants may not have the means to contribute to significant repairs, necessitating a proactive approach to property upkeep.
Despite these challenges, the high renter share in the area presents an opportunity. Although the exact percentage is not specified, a substantial number of renters typically indicates strong demand for housing vouchers. This demand can help stabilize occupancy rates and provide a steady stream of tenants willing to use Section 8 vouchers.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027).
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.