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 |
|---|---|---|---|---|
| 2BR | $1,800 | $306,611 | 0.59% | F |
| 3BR | $2,240 | $385,276 | 0.58% | F |
| 4BR | $2,370 | $437,411 | 0.54% | F |
| 5BR | $2,749 | $484,650 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 01056, located in Ludlow, MA, falls within the Springfield, MA MSA metro area. Its Fair Market Rent (FMR) for FY 2024 is set at $1370, while the market rent stands at $1,223. The median home value in Ludlow is $363,851, and the renter share is 22.5%. To contextualize these figures, we must compare them to typical ZIP codes within the Springfield, MA MSA.
A comparison of Ludlow's FMR and market rent indicates that it is slightly above average for the region. However, its median home value is relatively low compared to other areas within the Springfield, MA MSA, suggesting a potential value pocket for both landlords and small-portfolio investors. This lower home value could be attributed to various factors including the local economy, housing stock, and demographic composition.
The 22.5% renter share in Ludlow is noteworthy. Typically, a higher percentage of renters can indicate a greater demand for rental properties, which is beneficial for landlords. In conjunction with the below-average home values, this high renter share could signal a sweet spot for Section 8 housing. This means that there is a significant population eligible for government-subsidized housing, making it an attractive location for landlords who participate in the Section 8 program.
To summarize, ZIP 01056 appears to be a value pocket within the Springfield, MA MSA. It offers slightly higher rents than the market average, combined with below-average home values and a substantial renter population. These characteristics make it particularly appealing for landlords and investors interested in Section 8 housing opportunities.
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.