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 | $1,360 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,550 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,950 | $406,480 | 0.48% | F |
| 3BR | $2,550 | $478,947 | 0.53% | F |
| 4BR | $2,650 | $678,003 | 0.39% | F |
| 5BR | $3,074 | $746,643 | 0.41% | F |
U.S. Census Bureau data (2024)
The rent math for ZIP code 01062 does not align favorably with the Federal Market Rent (FMR) set at $1440 for fiscal year 2024. In contrast, the market rent as per the Census ACS stands at $1,161, indicating that landlords may struggle to find tenants willing to pay the higher FMR rate. This discrepancy suggests that relying on FMR for setting rental prices could lead to unoccupied units or reduced occupancy rates.
Acquisition in ZIP 01062 is somewhat affordable given the median home value of $484,357. However, the lack of data on days on market (DOM) and the low price-cut share of 0.1% imply that homes are generally selling quickly and without significant discounts. This rapid sale cycle and minimal price adjustments suggest that the market is competitive, which may pose challenges for new acquisitions, especially for small-portfolio investors looking to purchase properties at lower prices.
Tenant demand in Northampton, MA, appears robust. With a population of 9,816 and a 25.2% renter share, there are approximately 2,474 renters in the area. This indicates a steady pool of potential tenants, supporting the idea that rental properties can maintain occupancy levels. The high percentage of renters also suggests that the local economy supports a diverse housing market, where renting is a preferred option for many residents.
In summary, while there is a solid tenant demand in ZIP 01062, the rent math does not currently work in favor of landlords due to the disparity between the FMR and actual market rents. Acquisition remains affordable but is likely challenging due to the competitive nature of the market, evidenced by quick sales and little need for price reductions. For investors, it is crucial to consider these factors and potentially adjust rental pricing strategies to align with market conditions rather than solely relying on government-set FMRs.
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.