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 | $1,120 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,260 | $109,113 | 1.15% | B |
| 2BR | $1,590 | $150,703 | 1.06% | B |
| 3BR | $1,980 | $270,097 | 0.73% | D |
| 4BR | $2,090 | $289,742 | 0.72% | D |
U.S. Census Bureau data (2024)
In ZIP 01105 of Springfield, MA, landlords face several potential challenges when considering Section 8 investments. Tenant turnover is a significant risk due to the disparity between the market rent of $958 and the Fair Market Rent (FMR) of $1200 for FY 2024. This gap can lead to higher tenant churn as those who qualify for Section 8 may struggle to find units within their budget, increasing the likelihood of vacancies.
Vacancy exposure is another concern, especially since the average days on market (DOM) is not available. This lack of data makes it difficult to predict how long a property might remain vacant between tenants, which can impact cash flow and profitability. Additionally, there is a risk of deferred maintenance, given the typical home value of $252,048 and the median household income of $24,036. Landlords must ensure that properties are well-maintained and up to code, which can be costly without a corresponding increase in rental income.
Despite these risks, the high renter share of 84.9% in ZIP 01105 suggests strong demand for rental housing, including Section 8 vouchers. This high concentration of renters typically translates into a robust pool of voucher holders looking for homes, reducing the risk of prolonged vacancies. Moreover, the presence of a large number of renters often indicates a need for affordable housing, which can stabilize the market and provide consistent tenant occupancy.
A one-line verdict for a first-time Section 8 landlord in ZIP 01105 would be: Moderate risk.
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.