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 | $1,390 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,750 | $384,894 | 0.45% | F |
| 3BR | $2,160 | $438,514 | 0.49% | F |
| 4BR | $2,310 | $534,666 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 01036, located in Hampden, MA, is situated within the larger Springfield, MA Metropolitan Statistical Area (MSA). To analyze its position within the Springfield MSA, we can compare its Fair Market Rent (FMR) of $2060, market rent of $1,132, median home value of $441,374, and 5.1% renter share against typical metrics found in ZIP codes within the Springfield MSA.
Hampden's FMR of $2060 is notably higher than its market rent of $1,132, indicating that government-subsidized rents are significantly above what the private market dictates. This suggests that 01036 could be considered a value pocket for landlords participating in Section 8 programs, as they would receive higher rental payments relative to the local market conditions. The discrepancy between the FMR and the market rent also implies that there might be a segment of the population relying heavily on subsidized housing options.
The median home value in 01036 stands at $441,374, which is likely lower than the average home value across the entire Springfield MSA. Lower home values combined with a relatively low renter share of 5.1% suggest that this area is less densely populated with renters compared to other ZIP codes within the Springfield MSA. However, it is important to note that the renter share alone does not necessarily indicate the attractiveness of an area for Section 8 investments; rather, it points towards a potentially different demographic makeup.
When considering the characteristics of a Section 8 sweet spot, such as a high renter share coupled with below-average home values, ZIP 01036 does not fully fit this profile due to its lower-than-average renter share. Nonetheless, the higher FMR relative to market rent still makes it an attractive location for landlords seeking stable income through Section 8 tenancy. It is advisable to conduct further analysis on the local demand for subsidized housing and the availability of Section 8 vouchers to make a more informed decision about the investment potential in this ZIP code.
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.