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 analysis of ZIP 62764, located within the Springfield, IL MSA metro area, provides insights into its viability for Section 8 real-estate investments.
The rent math does not work in favor of Section 8 investments here. The Fair Market Rent (FMR) for ZIP 62764 in fiscal year 2024 is set at $1070. However, the lack of specific market rent data means we cannot directly compare it against typical rental rates. This absence makes it challenging to determine if the FMR aligns with local market conditions, potentially leading to under-rental situations where the subsidy does not cover market rates.
Acquisition affordability is uncertain due to the missing data on median home values, days on market (DOM), and the percentage of homes needing price cuts. Without these figures, it's difficult to assess whether buying properties in this ZIP code would be financially prudent for an investor. Typically, lower median home values, shorter DOM periods, and smaller price-cut shares indicate a more favorable market for property acquisitions.
Tenant demand is also unclear. The ZIP code lacks specific population and renter share data. A high renter share percentage usually signals strong demand for rental properties, which could support Section 8 tenancy. However, without knowing the exact numbers, it's impossible to gauge the potential occupancy rates and stability of rental income.
Verdict: ZIP 62764 presents a challenging environment for Section 8 real- estate investments due to insufficient data on market rents, median home values, days on market, price-cut shares, population, and renter share. To make informed decisions, landlords and small-portfolio investors need comprehensive local metrics to understand the financial feasibility and tenant demand accurately. Until these gaps are filled, investing in this ZIP code carries significant risk and uncertainty.
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.