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 | $1,260 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,420 | $160,489 | 0.88% | C |
| 2BR | $1,800 | $281,565 | 0.64% | D |
| 3BR | $2,240 | $339,514 | 0.66% | D |
| 4BR | $2,370 | $364,047 | 0.65% | D |
| 5BR | $2,749 | $483,928 | 0.57% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 01040, Holyoke, MA, hinges on its financial metrics: the Fair Market Rent (FMR), median home value, percentage of renters, and average income. With an FMR of $1,270 for fiscal year 2024, compared to a market rent of $1,666, there's a notable gap indicating potential for higher rental yields. The median home value stands at $323,014, which provides a benchmark for property investment costs.
Evaluating stability, 58.7% of residents are renters, suggesting a substantial demand for rental properties. However, the lack of data on days on market (DOM) makes it challenging to assess how quickly units might turn over. The average income figure of $53,605 is a critical indicator of tenants' ability to afford rent payments.
Based on these figures, ZIP 01040 leans towards being a steady-cashflow zone. The significant disparity between the FMR and market rent indicates that landlords can potentially charge above the FMR, thereby increasing their yield. Yet, the relatively low average income and high percentage of renters imply that while cash flow is likely, stability could be compromised if the local economy faces downturns. Tenants might struggle to meet higher-than-average rent payments, leading to increased risk of vacancy or delinquency.
To summarize, the high yield potential stems from the ability to charge more than the FMR, but the market's stability is questionable due to the lower average income. This combination suggests that while there is room for profit, careful management and tenant selection will be crucial to maintaining a steady cash flow.
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.