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 | $1,190 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,690 | $283,062 | 0.6% | F |
| 3BR | $2,100 | $318,187 | 0.66% | D |
| 4BR | $2,230 | $336,115 | 0.66% | D |
U.S. Census Bureau data (2024)
1350 is the Fair Market Rent (FMR) for ZIP 01080, Palmer, MA, as set for fiscal year 2024. This figure represents the maximum amount that a landlord can charge for a unit under the Section 8 program. In comparison, the market rent stands at 1125, according to Census ACS data, indicating a gap between what the market demands and what is subsidized by the government. The median home value in this area is 308290, reflecting a moderate housing market where properties are neither excessively expensive nor cheap. Renter share is a notable 35.5%, suggesting a significant portion of the population relies on rental properties, which could be an advantage for landlords seeking steady tenants. However, the median income of 89063 might limit the financial capacity of potential renters, making it crucial for landlords to understand their tenant pool's affordability. Unfortunately, the days on market (DOM) and the percentage of price-cut shares are not available, which would have provided insights into how quickly homes sell and whether there is a need to adjust prices to attract buyers. Despite these limitations, the data paints a picture where landlords can expect to receive a guaranteed income through the Section 8 program, albeit at a rate slightly below the market. For small-portfolio investors, the opportunity to stabilize cash flow while still participating in a moderately priced market is evident. The verdict on Section 8 participation in Palmer, MA, remains positive, given the alignment of FMR with the local economic conditions.
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.