Location: Amherst Town-Northampton, MA | Metro: Amherst Town-Northampton, 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 | $1,640 |
| 1 Bedroom | $1,840 |
| 2 Bedrooms | $2,360 |
| 3 Bedrooms | $3,050 |
| 4 Bedrooms | $3,190 |
| 5 Bedrooms | $3,700 |
| 6 Bedrooms | $4,144 |
| 7 Bedrooms | $4,476 |
| 8 Bedrooms | $4,700 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,360 | $427,419 | 0.55% | F |
| 3BR | $3,050 | $495,944 | 0.61% | D |
| 4BR | $3,190 | $624,687 | 0.51% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1590 for ZIP 01038 (Hatfield, MA) in fiscal year 2024 can adequately cover the mortgage on a home valued at $487,034. The answer is not straightforward without knowing the exact terms of the mortgage, including interest rate and loan duration. However, the median home value in the area suggests that homes are generally priced higher than the average rent, indicating that a mortgage on a home of this value could be challenging to cover solely with rental income.
The second objection could be regarding the relatively low rental demand in Hatfield, MA, which stands at 22.3%. This figure is below the national average, suggesting that the area might have fewer renters compared to homeowners. While this could imply a smaller pool of potential tenants, it's important to note that the rental demand percentage does not necessarily correlate directly with the ease of finding tenants. Other factors, such as the local economy and job availability, play significant roles in tenant acquisition.
A third concern might revolve around the ability of Section 8 vouchers to keep up with market rents, currently estimated at $1442. The FMR of $1590 for fiscal year 2024 indicates that voucher holders should theoretically be able to afford market-rate rentals. However, the actual payment standard for vouchers may differ based on local conditions and HUD adjustments. Given the close proximity of the FMR to the market rent, it's reasonable to expect that voucher payments will likely remain competitive, though they may not always cover the full amount of market rents.
While these points highlight some challenges, they also underscore the importance of thorough due diligence and understanding local market dynamics. Investors should consider consulting local real estate professionals and reviewing recent mortgage rates and terms to make informed decisions about the feasibility of investing in Hatfield, MA under Section 8 guidelines.
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.