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 | $1,410 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,500 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,590 | $189,471 | 0.84% | C |
| 2BR | $2,010 | $263,515 | 0.76% | D |
| 3BR | $2,500 | $332,513 | 0.75% | D |
| 4BR | $2,650 | $381,673 | 0.69% | D |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 01129, located in Springfield, Massachusetts, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 01129 in fiscal year 2024 is set at $1510, while the Census ACS reports the market rent at $1358. This means that the FMR exceeds the market rent by $152, or approximately 11.2%. In such a scenario, where the FMR is higher than the market rent, landlords can leverage this situation to their advantage.
Voucher tenants provide a reliable source of income, as the payment structure is guaranteed by the government up to the FMR limit. Given the context of Springfield, MA, where 21.5% of residents are renters, and the median income stands at $97,162, landlords can expect a steady stream of rental income without the risk of vacancy. Additionally, the median home value in the area is $317,112, indicating a stable property market. For small-portfolio investors, this makes ZIP 01129 a prime location for maximizing yield through Section 8 tenancy.
The reliability of Section 8 payments is particularly beneficial when considering the financial landscape of Springfield. With an FMR that is above the market rent, landlords can secure a tenant base that pays close to the FMR rate, which is higher than what the open market would typically offer. This discrepancy ensures that landlords receive a rent premium compared to non-voucher tenants, enhancing the overall profitability of their investments.
In summary, the gap between the FMR and market rent in ZIP 01129 presents a compelling opportunity for landlords and small-portfolio investors. By accepting Section 8 tenants, they can benefit from a yield play, receiving rents closer to the FMR of $1510 rather than the lower market rate of $1358. This strategy aligns well with the local economic conditions and offers a stable and potentially lucrative investment option.
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.