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 | $1,310 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,330 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,870 | $284,061 | 0.66% | D |
| 3BR | $2,330 | $305,793 | 0.76% | D |
| 4BR | $2,460 | $352,837 | 0.7% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 01107, located in Springfield, MA, reveals a favorable environment for rental properties. The HUD Fair Market Rent (FMR) for the area, set at $1410 for fiscal year 2024, significantly exceeds the average market rent of $944 based on Census ACS data. This means that voucher tenants can cashflow comfortably at the FMR rate without requiring premium units, providing a solid financial cushion for landlords.
To further evaluate the investment potential, consider the median home value in the area, which stands at $305,122. With the average market rent of $944, the rent-to-price ratio is approximately 0.00031, indicating that rental income is relatively low compared to property values. However, this does not necessarily diminish the attractiveness of the market for Section 8 investors, as the primary focus is on stable, government-backed rental income rather than the speculative gains associated with homeownership.
The dynamics of days on market (DOM) and price cut percentages are not applicable (N/A) for rental properties, but they do highlight the distinction between renting and buying. For voucher holders, the stability and predictability of rental payments make it an ideal scenario for long-term investments.
The strongest angle for investors in this market is cashflow. The substantial difference between the HUD FMR and the average market rent ensures that landlords can generate positive cashflow while maintaining competitive pricing in the local rental market.
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.