Section 8 Fair Market Rent (FMR) for ZIP 01020 - 2027

Location: Springfield, MA | Metro: Springfield, MA MSA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,260
1 Bedroom	$1,420
2 Bedrooms	$1,800
3 Bedrooms	$2,240
4 Bedrooms	$2,370
5 Bedrooms	$2,749
6 Bedrooms	$3,079
7 Bedrooms	$3,325
8 Bedrooms	$3,491

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

30,167

Median Household Income

$66,009

Housing Units

14,319

Renter Percentage

41.6%

Occupancy Rate

96.1%

Renter Occupied

5,729

Housing Authorities Serving ZIP 01020

Springfield Housing Authority (Springfield, MA) - 3,463 Section 8 vouchers
Holyoke Housing Authority (Holyoke, MA) - 1,938 Section 8 vouchers
Chicopee Housing Authority (Chicopee, MA) - 574 Section 8 vouchers
Westfield Housing Authority (Westfield, MA) - 517 Section 8 vouchers
West Springfield Housing Authority (West Springfield, MA) - 255 Section 8 vouchers

A landlord considering investing in ZIP 01020 (Chicopee, MA) for Section 8 purposes must evaluate several factors to make an informed decision. Let's break down the analysis into a decision tree.

1) Does the Fair Market Rent (FMR) of $1400 cover the debt service on a property valued at $320,663?

No: The FMR of $1400 does not clear the debt service on a $320,663 property. This means that relying solely on Section 8 tenants would not be financially viable without additional rental income or subsidies.

2) How does the Zillow Observed Rental Index (ZORI) of $1,955 compare to the FMR?

Above FMR: The ZORI of $1,955 is above the FMR of $1400. This suggests that the market rent is higher than what Section 8 pays, indicating potential for higher returns if you can secure non-Section 8 tenants.

3) Is there sufficient demand with 41.6% of residents being renters and an average of 10 days on the market (DOM)?

It Depends: With 41.6% of residents renting and an average DOM of 10 days, there appears to be a reasonable level of demand. However, the viability of a Section 8 investment hinges on the ability to find a balance between the number of Section 8 tenants and market-rate tenants. If the majority of your units are occupied by market-rate tenants, the financial sustainability improves significantly.

In conclusion, ZIP 01020 presents a challenging environment for purely Section 8 investments due to the low FMR relative to the debt service. However, the presence of a strong market rental rate and a decent rental demand suggests that mixed-income properties could thrive. Landlords should consider diversifying their tenant mix to ensure financial stability.

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.