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 |
ZIP code 62796, located within the Springfield, IL MSA, presents an interesting scenario when compared to other ZIP codes in the same metropolitan area. The Fair Market Rent (FMR) for 62796 is set at $1070 for fiscal year 2024, which serves as a benchmark for rental affordability.
In contrast to the FMR, specific data on market rent and home values for ZIP 62796 are currently unavailable. This absence suggests that 62796 might be less developed or have fewer housing transactions compared to other ZIP codes in the Springfield, IL MSA. However, the FMR can still provide insights into the general rental price level.
The FMR of $1070 indicates that 62796 is likely a value pocket within the Springfield, IL MSA. Value pockets are typically characterized by lower-than-average rents and home values, making them attractive for low-income households who qualify for Section 8 assistance. Given that the FMR is a government-determined figure that reflects the maximum rent affordable for low-income families, it suggests that the actual market rents could be lower, or at least comparable, to this amount.
The lack of data on market rent and home values, combined with the presence of an FMR, implies that there is a significant portion of the population in 62796 that relies on rental housing. Although the exact percentage of renters is unknown, the fact that there is an established FMR suggests a notable demand for affordable rental units.
To determine if 62796 is a Section 8 sweet spot, we would need to know the renter share and home values. A high renter share with below-metro average home values usually points towards areas where Section 8 vouchers are particularly useful. Since this information is not available, we cannot definitively conclude that 62796 is such a sweet spot, but the existing data suggest it could be a valuable area for landlords looking to serve low-income tenants.
For landlords and small-portfolio investors, ZIP 62796 offers an opportunity to participate in a value-driven market segment. With rents potentially aligned with the FMR, properties here can attract tenants using Section 8 vouchers effectively. This ZIP code stands out due to its lower rental cost structure, indicating a niche market within the Springfield, IL MSA that caters specifically to those requiring affordable housing solutions.
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.