Updated 2026 · Based on median market data for Springfield, IL
Home values in Springfield, IL have appreciated at 1.8% per year. Appreciation is modest, meaning total returns will be driven primarily by cash flow rather than equity gains. This is actually preferred by many investors who want predictable, income-based returns.
If Springfield continues appreciating at 1.8% annually, the current median of $135,000 would reach approximately $147,595 in 5 years — an equity gain of $12,595 on a property purchased at the median. With a 20% down payment of $27,000, that represents a 47% return on invested equity from appreciation alone. Combined with 5 years of NOI totaling approximately $32,172, the projected total return is $44,767 — a 166% cumulative return on the initial investment.
Population growth in Springfield is minimal at 0.1%. Appreciation here is more likely driven by regional economic factors, inflation, and housing stock constraints rather than population-driven demand.
Smart investors evaluate both cash flow AND appreciation. In Springfield, the 4.77% cap rate provides moderate ongoing cash flow, while 1.8% annual appreciation adds an equity component. Conservative underwriting is essential. Focus on deals where the cash flow stands on its own, and treat any appreciation as a bonus.