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 | $1,380 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,960 |
| 3 Bedrooms | $2,440 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,960 | $303,354 | 0.65% | D |
| 3BR | $2,440 | $393,076 | 0.62% | D |
| 4BR | $2,580 | $444,693 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 01081, located in Wales, Massachusetts, presents a unique balance between yield and stability that is worth exploring for landlords and small-portfolio investors.
On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,240. This figure is notably higher than the local market rent of $1,090, indicating a potential upside for properties participating in the Section 8 program. The median home value of $335,735 suggests that the area has a relatively high property cost, which could be a barrier to entry for some investors but also implies a strong underlying asset value.
When it comes to stability, the data reveals a mixed picture. The percentage of renters in the area is 11.4%, which is quite low. This suggests that the majority of residents prefer homeownership, potentially leading to less demand for rental properties. However, the average household income in the area is $86,979, indicating a financially stable population that could support consistent rental payments. The lack of data on the number of days on the market (DOM) makes it difficult to assess the speed at which rental units are typically filled, but the high income level is a positive indicator for timely rent collection.
Given these figures, ZIP 01081 does not fit neatly into the categories of a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it occupies a middle ground where the potential for higher yields through participation in the Section 8 program is present, but the low percentage of renters and limited DOM data suggest a market that might not offer the same level of stability seen in areas with a higher proportion of rental demand.
For investors looking to maximize returns, the FMR advantage could be compelling. However, they should be prepared for a potentially slower turnaround time when filling vacancies and consider the implications of a predominantly owner-occupied community on long-term occupancy rates. For those seeking a balance between yield and stability, this ZIP code offers a moderate opportunity, contingent upon careful selection of properties and tenants.
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.