Location: Springfield, MA | Metro: Springfield, MA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,260 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
The median home value in ZIP 01014, located within the Springfield, MA MSA metro area, stands at $457,562. The HUD Fair Market Rent (FMR) for a two-bedroom unit in ZIP 01014 for fiscal year 2024 is set at $1,340. However, the average market rent in this area is higher, at approximately $2,968 per month. Given this comparison, voucher tenants will only cashflow at the FMR if they reside in premium units that are priced lower than the average market rent.
The rent-to-price ratio, derived from the median home value and average monthly rent, is roughly 0.65%. This indicates that rental income represents a relatively small portion of the overall property value. Landlords should consider this when evaluating investment opportunities in the area.
The vacancy rate in ZIP 01014 is notably high at 46.6%, suggesting that there is significant competition among landlords to attract tenants. Additionally, the average time to sell a property in the Springfield, MA metro area is 35 days, with few listings requiring price cuts. These factors imply a balanced market where both buyers and sellers have similar levels of negotiating power.
The strongest angle for investors in ZIP 01014 is stability. Despite the high vacancy rates, the market remains balanced, providing a consistent environment for long-term investments. Investors should focus on identifying units that are priced competitively to ensure positive cashflow while taking advantage of stable market conditions.
Data Sources: FMR data from HUD (2027).
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.