Location: Amherst Town-Northampton, MA | Metro: Amherst Town-Northampton, MA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,660 |
| 1 Bedroom | $1,860 |
| 2 Bedrooms | $2,370 |
| 3 Bedrooms | $3,080 |
| 4 Bedrooms | $3,220 |
| 5 Bedrooms | $3,735 |
| 6 Bedrooms | $4,183 |
| 7 Bedrooms | $4,518 |
| 8 Bedrooms | $4,744 |
U.S. Census Bureau data (2024)
ZIP code 01088, located in Amherst Town-Northampton, MA MSA metro, offers a unique opportunity for inclusion in a Section 8 portfolio strategy. This area should be considered primarily as an appreciation play rather than a cash-flow anchor or diversifier.
The primary reason for this classification is the discrepancy between the Fair Market Rent (FMR) set by HUD and the actual market rents. For fiscal year 2024, the FMR for ZIP 01088 is $1280, which is significantly higher than the current market rent of $1171. This indicates that there is potential for rental prices to rise to meet the FMR levels over time, thus increasing the property's value and rental income. While the median home value is not available, the strong correlation between rising rents and property values suggests that this ZIP could offer substantial appreciation opportunities in the future.
Although the ZIP does not have specific data on price-cut share or days on market (DOM), the high FMR compared to market rents implies that landlords can expect to see their investment grow in value as the rental market adjusts. Additionally, the 39.1% renter share and median income of $85,368 indicate a stable tenant base with a good capacity to pay higher rents, further supporting the appreciation play thesis.
While this ZIP could also serve as a diversifier due to its renter share and median income, the most compelling argument lies in its potential for appreciation. The spread between the FMR and market rent presents a clear path for increasing rental income, making it an attractive addition to any Section 8 portfolio strategy focused on long-term growth.
Data Sources: FMR data from HUD (2027). 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.