Location: Springfield, MA | Metro: Springfield, MA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,360 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,520 | $158,699 | 0.96% | C |
| 2BR | $1,930 | $293,884 | 0.66% | D |
| 3BR | $2,400 | $382,739 | 0.63% | D |
| 4BR | $2,540 | $423,754 | 0.6% | F |
| 5BR | $2,946 | $497,426 | 0.59% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 01001, located in Agawam, Massachusetts, within the Springfield, MA Metropolitan Statistical Area (MSA), reveals several key insights for landlords and small-portfolio investors.
Firstly, regarding the rent math, the Family Monthly Rent (FMR) for FY 2024 is set at $1520, which is higher than the current market rent of $1,318 as reported by the Census ACS. This suggests that landlords could potentially increase rents to align with the FMR, but it also indicates a current gap between government standards and actual market conditions.
Secondly, the acquisition cost of properties is relatively affordable, with a median home value of $341,110. However, the lack of data on days-on-market (DOM) and the very low percentage of homes needing price cuts (0.1%) imply a competitive market where quick sales and minimal price adjustments are common. This competitiveness can make property acquisition challenging despite the median home value being within an acceptable range for many investors.
Lastly, there is a notable tenant demand in the area. With a total population of 16,234 and a renter share of 26.2%, approximately 4,250 residents are likely seeking rental housing. This demand supports the potential for successful tenancy, though it also underscores the importance of maintaining competitive rental rates to attract and retain tenants.
In conclusion, ZIP 01001 presents a viable investment opportunity for landlords and small-portfolio investors. The discrepancy between the FMR and market rent offers room for strategic pricing adjustments. While the median home value suggests affordability, the competitive nature of the market necessitates careful consideration of acquisition strategies. The substantial tenant demand, particularly among renters, provides a solid foundation for sustained occupancy and rental income. However, landlords must remain attentive to market dynamics to ensure profitability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
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.