Real Estate Agent · Member since 2026 · 20 posts · 5 votes
At the lender's floor, the Springfield metro looks easy: 367 of the 1,411 homes for sale I could price cover the full payment at 20% down, about 1 in 4. Raise the bar to DSCR 1.25, which is what most investors I talk to want, and it drops to 39, about 1 in 36.
Almost all of the 39 are in Springfield itself: 34 of 638. The suburbs barely show at this bar: Nixa 0 of 109, Ozark 1 of 110, Republic 1 of 87.
What: 34 single-family homes, most priced $109k to $139k, typically 3 beds, and 5 duplexes to fourplexes around $220k.
DSCR 1.25 means the 12-month lease covers principal, interest, taxes, insurance and HOA with 25% to spare. Vacancy, repairs, capex and management still come out of that cushion.
Assumptions: 30-year loan at 7.25% (7.625% for 2–4 units). Taxes at the county's effective rate on the price, about 1.0% in Greene County and 1.25% elsewhere in the metro. Insurance from county defaults. HOA as listed. Rents are two independent estimates for a 12-month lease. Site-built resale only.
If you own rentals in Springfield: what are 3-bed houses in the $110k–$140k range leasing for?
Disclosure: I run NetsPositive, the screener these counts come from.
Love my market, and I could see that happening in the right area
The biggest issue that I could see is the area of Springfield. On the north side, that kind of price point is VERY doable but rents will be considerably lower the farther you get from the universities.
Whereas if you focus on the south/east side of town, 3 bedrooms can routinely be in the 1500-1800 pretty easily. The issue is that the price point will certainly follow
The other issue I see is the availability of 2-4s as many have been purchased and owned for many years
Thanks, AJ, and your read matches the numbers ZIP by ZIP. At DSCR 1.25 with 20% down, the north and west sides carry it: 65803 has 14 of 121 and 65802 has 12 of 138. The south and east sides have the rents you describe, with my estimates for a typical 3-bed around $1,700 in 65807 and $1,870 in 65804, but the price follows, just like you said: a median 3-bed there runs $240k to $280k, and only 3 of 230 clear the bar.
Same on 2–4s: only 34 across the whole metro had numbers this week, and 5 of them clear 1.25 at 20% down.
Is $1,870 for a typical 3-bed in 65804 high, in your experience?