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 | $1,230 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,750 | $330,764 | 0.53% | F |
| 3BR | $2,180 | $401,722 | 0.54% | F |
| 4BR | $2,300 | $470,571 | 0.49% | F |
| 5BR | $2,668 | $509,538 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 01030 is located in Agawam, Massachusetts, and represents a neighborhood with a total population of 12,305 residents. Approximately 24.8% of these residents are renters, indicating a moderate demand for rental properties. The median household income in this area is $93,815, which suggests a relatively affluent community. The median home value stands at $395,902, reflecting the high cost of homeownership and the overall economic status of the neighborhood.
From an investment perspective, the Fair Market Rent (FMR) for ZIP 01030 is set at $1,440 for fiscal year 2024. This figure, established by HUD for determining payment standards for Section 8 vouchers, is notably higher than the reported market rent of $1,118 based on Census ACS data. This discrepancy means that landlords who participate in the Section 8 program can potentially earn more per unit compared to the local market rates, making it an attractive option for those looking to maximize their rental income.
The practical question for investors is whether this ZIP code suits a hands-off voucher operator or requires a hands-on approach for value-add opportunities. Given the above-average FMR compared to the actual market rent, a hands-off voucher operator could likely achieve a positive cash flow without significant property management efforts. However, for a value-add buyer, there might be limited upside potential due to the already favorable Section 8 rates. To succeed in this market, such an investor would need to focus on improving property efficiency and reducing operating costs, rather than increasing rents.
In summary, ZIP 01030 in Agawam, MA, offers a solid investment opportunity for hands-off Section 8 landlords, with the promise of steady, government-backed rental income exceeding typical market rates. For those seeking to actively enhance property values, the landscape is more challenging, requiring careful consideration of operational improvements to justify the investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.