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 | $1,500 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,660 |
| 4 Bedrooms | $2,820 |
| 5 Bedrooms | $3,271 |
| 6 Bedrooms | $3,664 |
| 7 Bedrooms | $3,957 |
| 8 Bedrooms | $4,155 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,140 | $209,693 | 1.02% | B |
U.S. Census Bureau data (2024)
The ZIP code 01103 in Springfield, Massachusetts, presents a challenging rental market for households. The median income in this area stands at $21,355, which is significantly lower than the market rate for rent, set at $1,635 per month (ZORI). This stark contrast highlights a substantial affordability gap for residents.
To put this into perspective, consider the federal payment standard for housing vouchers, which is set at $1,480 for the fiscal year 2024. While this is slightly below the market rate, it still represents a considerable portion of the average household's income. In fact, a household earning the median income would spend over 80% of their monthly income on rent if they were to pay the ZORI rate, making it nearly impossible to cover other living expenses.
ZIP 01103 has a high concentration of renters, accounting for 91.5% of the 2,477 population. This means that most residents rely heavily on affordable housing options, creating intense competition among landlords for tenants who can consistently pay market rates. The majority of potential renters will likely be seeking out properties that accept housing vouchers due to the financial strain of paying $1,635 monthly rent.
The takeaway for landlords considering their strategy is clear: focusing on accepting housing vouchers could provide a more stable income stream compared to pursuing cash-paying tenants who might struggle to meet the market rate. By aligning with the voucher payment standard of $1,480, landlords can tap into a larger pool of qualified tenants, ensuring better occupancy rates and financial security in an area where median income does not support the current market rate for rent.
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.