Location: Amherst Town-Northampton, MA | Metro: Amherst Town-Northampton, 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 | $1,460 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $2,090 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $2,840 |
| 5 Bedrooms | $3,294 |
| 6 Bedrooms | $3,689 |
| 7 Bedrooms | $3,984 |
| 8 Bedrooms | $4,183 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,090 | $371,934 | 0.56% | F |
| 3BR | $2,740 | $486,697 | 0.56% | F |
| 4BR | $2,840 | $575,283 | 0.49% | F |
| 5BR | $3,294 | $590,826 | 0.56% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,430 for ZIP 01007 in Belchertown, MA, for fiscal year 2024 will sufficiently cover the mortgage on a property valued at $467,794. Using a typical 30-year fixed mortgage rate, which currently averages around 5%, the monthly mortgage payment on a home priced at $467,794 with a down payment of 20% would be approximately $1,900. This means that the FMR alone would not cover the mortgage payment. However, landlords can often secure higher rents for homes with amenities or in prime locations, potentially exceeding the FMR.
The rental demand in ZIP 01007 stands at 13.1%, which could prompt concerns about whether there is sufficient tenant interest to maintain occupancy levels. While 13.1% may seem low compared to urban areas, it reflects a stable demand. According to recent demographic trends, the population of Belchertown has remained relatively steady over the past decade, suggesting a consistent pool of potential renters. Additionally, the local economy supports various industries, including manufacturing and healthcare, providing a reliable source of employment and thus rental demand.
The final objection relates to whether Housing Choice Vouchers will keep pace with the market rent of $2,413. The voucher payment standard is typically lower than market rates but can still provide a stable income stream. The FMR of $1,430 suggests that the voucher program aims to subsidize rents up to this level, which is below the market rate. Landlords should consider the likelihood of receiving additional non-voucher rent from tenants to bridge the gap between the voucher amount and market rent. While the data does not provide a direct comparison of the voucher payment standard to the market rent, historical trends indicate that voucher amounts tend to adjust incrementally over time to reflect changes in the housing market.
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.