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 | $1,900 |
| 1 Bedroom | $2,130 |
| 2 Bedrooms | $2,700 |
| 3 Bedrooms | $3,360 |
| 4 Bedrooms | $3,550 |
| 5 Bedrooms | $4,118 |
| 6 Bedrooms | $4,612 |
| 7 Bedrooms | $4,981 |
| 8 Bedrooms | $5,230 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,700 | $374,766 | 0.72% | D |
| 3BR | $3,360 | $439,206 | 0.77% | D |
| 4BR | $3,550 | $509,946 | 0.7% | D |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP 01034 under the Section 8 program are significant. Tenant turnover is a critical issue, with the market rent at $1,375 being far below the Fair Market Rent (FMR) of $1,840 for FY 2024. This discrepancy can lead to higher turnover rates as tenants seek more affordable housing options. Vacancy exposure is another concern, with the Days on Market (DOM) being unavailable, indicating a lack of data on how quickly properties are rented out. This uncertainty can result in extended periods without rental income. Additionally, the deferred maintenance risk is notable due to the typical home value of $415,707 and the median income of $91,016. The disparity between home values and median income suggests that many residents may struggle to afford necessary repairs and upkeep, potentially leading to higher maintenance costs for landlords.
Despite these risks, the high concentration of renters in ZIP 01034, comprising 6.6% of the population, typically translates into robust demand for rental properties. This high renter density often correlates with increased demand for housing vouchers, which can provide a steady stream of income through the Section 8 program. While the risk factors are substantial, the local rental market's characteristics suggest that there is a reliable pool of potential tenants who might benefit from the Section 8 subsidy.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 01034.
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.