Section 8 Fair Market Rent (FMR) for ZIP 01057 - 2027

Location: Springfield, MA | Metro: Springfield, MA MSA

Investment Score for ZIP 01057

F
Monthly Rent (2BR)
$1,570
Median Price (2BR)
$348,353
1% Rule
0.45%
Annual Yield
5.41%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,100
1 Bedroom$1,250
2 Bedrooms$1,570
3 Bedrooms$1,920
4 Bedrooms$2,070
5 Bedrooms$2,401
6 Bedrooms$2,689
7 Bedrooms$2,904
8 Bedrooms$3,049

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,570 $348,353 0.45% F
3BR $1,920 $414,539 0.46% F
4BR $2,070 $480,248 0.43% F
5BR $2,401 $513,808 0.47% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
8,176
Median Household Income
$98,508
Housing Units
3,490
Renter Percentage
17.3%
Occupancy Rate
93.6%
Renter Occupied
566

The economics of Section 8 in ZIP code 01057, Monson, MA, within Hampden County, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1150. However, the local market rent, according to Census ACS data, is significantly lower at $874.

A landlord participating in the Section 8 program receives a rental subsidy from the government to cover the difference between the tenant's contribution and the total rent. The tenant is typically required to pay 30% of their adjusted income towards rent. In addition to this, there are utility allowances that vary based on the size of the unit and the region. For a two-bedroom unit in this area, the utility allowance is not specified but can be estimated based on regional standards.

To illustrate, let’s assume a tenant with an adjusted monthly income of $1,000. Thirty percent of this income would be $300, which is the amount they would contribute toward the rent. The remaining $850 of the SAFMR would come from the housing authority. If we factor in the local market rent of $874, the landlord would receive the full market rent plus an additional $26 from the housing authority, making the total reimbursement slightly above the market rate.

The typical reimbursement gap or surplus for a two-bedroom voucher in ZIP 01057 is a surplus of $26. This means that landlords can expect to receive a little more than the local market rent when they participate in the Section 8 program for this particular ZIP code. It’s important to note that the actual amounts can fluctuate based on the individual tenant’s income and any changes in the SAFMR or market rent over time.

Landlords should also consider that the Section 8 program has specific rules regarding the rent they can charge. They cannot charge more than the SAFMR for a given unit type, even if the market conditions suggest higher rates might be possible. Therefore, while the surplus exists, it is limited by the SAFMR cap.

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.