Introduction

Investing in rental properties can be a lucrative venture if approached with careful planning and thorough research. A good rental property is characterized by several factors: location, condition of the property, market demand, and potential return on investment (ROI). Among these, the location is paramount as it influences rental income, property value, and tenant satisfaction.

Sangamon County, IL, presents a promising opportunity for real estate investors. The county boasts a mix of urban and suburban areas, each with unique characteristics and potential. Its capital city, Springfield, is rich in history and culture, attracting tourists and professionals alike. This guide will explore the best neighborhoods and areas within Sangamon County, grading each on various aspects to help you make an informed investment decision.

Best Neighborhoods and Areas in Sangamon County, IL

1. Downtown Springfield

Grades:

• Convenience: A
• Tourist Attractions: A
• Things to Do: A
• Average Home Prices: B
• Return on Investment: A
• Proximity to Work-Related Travel: A
• X-Factor: A

Convenience:
Downtown Springfield offers excellent convenience with a high walkability score. Residents have easy access to grocery stores, restaurants, shopping centers, and public transportation. The central location makes it ideal for tenants who prefer a car-free lifestyle.

Tourist Attractions:
This area is a hub for tourists, with attractions like the Abraham Lincoln Presidential Library and Museum, the Old State Capitol, and Lincoln Home National Historic Site. These landmarks draw a steady stream of visitors, contributing to a vibrant rental market.

Things to Do:
Downtown Springfield is rich in cultural and recreational activities. From historical tours to a bustling nightlife, there's something for everyone. The area also hosts various festivals and events throughout the year, enhancing its appeal to both residents and tourists.

Average Home Prices:
Home prices in downtown Springfield are relatively affordable compared to other major cities. This affordability, combined with the area's high demand, makes it an attractive option for investors.

Return on Investment:
The ROI in downtown Springfield is high due to the consistent demand for rental properties from both tourists and professionals. The area's popularity ensures low vacancy rates and stable rental income.

Proximity to Work-Related Travel:
Downtown is close to major hospitals, the Illinois State Capitol, and convention centers, making it a prime location for professionals. This proximity ensures a steady demand for rental properties from employees in these sectors.

X-Factor:
The unique historical charm and vibrant cultural scene make downtown Springfield highly desirable. Its blend of old-world charm and modern amenities offers a distinctive living experience.

2. Chatham

Grades:

• Convenience: B
• Tourist Attractions: B
• Things to Do: B
• Average Home Prices: A
• Return on Investment: B
• Proximity to Work-Related Travel: B
• X-Factor: B

Convenience:
Chatham is a suburban area offering a quieter lifestyle compared to downtown Springfield. While less walkable, it provides easy access to essential services and amenities through short drives.

Tourist Attractions:
Although not a major tourist hub, Chatham is close to several attractions in Springfield, allowing residents to enjoy the best of both worlds. The area itself is known for its parks and family-friendly environment.

Things to Do:
Chatham offers numerous recreational activities, including parks, sports facilities, and community events. The area is ideal for families and individuals seeking a suburban lifestyle with access to urban amenities.

Average Home Prices:
Home prices in Chatham are generally lower than in downtown Springfield, making it an affordable option for investors looking for stable rental income without the higher property costs.

Return on Investment:
The ROI in Chatham is steady, with consistent demand from families and professionals seeking suburban living. The area's affordability and desirability contribute to its investment potential.

Proximity to Work-Related Travel:
Chatham is within commuting distance to Springfield, providing easy access to major employment centers, including hospitals and government offices.

X-Factor:
Chatham's strong sense of community, excellent schools, and family-friendly atmosphere make it a unique and desirable place to live. Its suburban charm attracts long-term tenants, ensuring stability for investors.

3. Leland Grove

Grades:

• Convenience: B
• Tourist Attractions: C
• Things to Do: B
• Average Home Prices: B
• Return on Investment: B
• Proximity to Work-Related Travel: B
• X-Factor: B

Convenience:
Leland Grove offers a mix of suburban and urban conveniences. While it lacks the high walkability of downtown Springfield, it provides easy access to essential services and amenities.

Tourist Attractions:
The area does not have major tourist attractions but benefits from its proximity to Springfield's historical sites and cultural landmarks.

Things to Do:
Residents of Leland Grove enjoy access to parks, local eateries, and community events. The area offers a relaxed, suburban lifestyle with occasional urban perks.

Average Home Prices:
Home prices in Leland Grove are moderate, offering a balance between affordability and investment potential. This makes it an attractive option for investors seeking stable, long-term returns.

Return on Investment:
The ROI in Leland Grove is reliable, with consistent demand from tenants seeking a suburban lifestyle close to urban amenities. The area's stability ensures a steady rental income.

Proximity to Work-Related Travel:
Leland Grove is conveniently located near major highways, providing easy access to Springfield's employment centers, including hospitals and business districts.

X-Factor:
Leland Grove's appeal lies in its tranquil suburban environment combined with convenient access to urban amenities. Its strong community feel and quality of life attract long-term tenants, ensuring investment stability.

4. Jerome

Grades:

• Convenience: B
• Tourist Attractions: C
• Things to Do: B
• Average Home Prices: A
• Return on Investment: B
• Proximity to Work-Related Travel: B
• X-Factor: B

Convenience:
Jerome offers a suburban lifestyle with easy access to essential services and amenities. While less walkable than urban areas, it provides convenient access to shopping centers and recreational facilities.

Tourist Attractions:
The area itself is not a major tourist destination but benefits from its proximity to Springfield's attractions. Residents can easily access cultural and historical sites in the city.

Things to Do:
Jerome offers various recreational activities, including parks, sports facilities, and community events. The area is ideal for families and individuals seeking a suburban environment.

Average Home Prices:
Home prices in Jerome are generally lower than in more urban areas, making it an affordable option for investors seeking stable rental income.

Return on Investment:
The ROI in Jerome is consistent, with steady demand from tenants seeking a suburban lifestyle. The area's affordability and family-friendly environment contribute to its investment potential.

Proximity to Work-Related Travel:
Jerome is within commuting distance to Springfield, providing easy access to major employment centers, including hospitals and government offices.

X-Factor:
Jerome's strong sense of community, excellent schools, and family-friendly atmosphere make it a unique and desirable place to live. Its suburban charm attracts long-term tenants, ensuring stability for investors.

Conclusion

Investing in rental properties in Sangamon County, IL, offers diverse opportunities across various neighborhoods and areas. Each area presents unique characteristics and potential, from the vibrant, historic charm of downtown Springfield to the suburban appeal of Chatham, Leland Grove, and Jerome. By understanding the strengths and opportunities of each area, investors can make informed decisions to unlock the full potential of their investments in Sangamon County.