Location: Springfield, MA | Metro: Springfield, MA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,160 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 01013 (Chicopee, MA) for Section 8 purposes, follow these steps:
If the monthly debt service (including mortgage payments, property taxes, insurance, and maintenance costs) is less than or equal to $1,290, then the answer is yes. Otherwise, it's no. For example, if the monthly debt service is $1,300, the FMR does not clear the debt service, making it an unviable investment for Section 8.
If market rent ($1,699) is above the FMR ($1,290), then landlords will need to assess whether they are willing to accept the lower Section 8 payment. In this case, it depends on the landlord's willingness to take a lower rental rate compared to the market value.
If market rent is at or below the FMR, then landlords can proceed without concern about losing out on higher market rents. This would be a clear yes, as the FMR aligns with or exceeds market conditions.
The rental demand in Chicopee, MA, is indicated by the percentage of renters (50.8%) and the number of days on the market (DOM) which is listed as N/A. A high percentage of renters suggests strong demand. However, without DOM data, it's challenging to make a definitive assessment. If the DOM is low, indicating quick leasing, then there is sufficient demand, leading to a yes. If DOM is high, suggesting longer vacancy periods, then the answer is no due to insufficient demand.
In summary, purchasing a property in ZIP 01013 for Section 8 hinges on the alignment between FMR and debt service, market rent vs. FMR, and the strength of rental demand. Landlords must carefully weigh these factors using the specific data points provided.
Data Sources: FMR data from HUD (2027). 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.