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 | $1,360 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,940 |
| 3 Bedrooms | $2,410 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,940 | $257,185 | 0.75% | D |
| 3BR | $2,410 | $301,305 | 0.8% | D |
| 4BR | $2,550 | $319,190 | 0.8% | D |
U.S. Census Bureau data (2024)
ZIP 01151, located in Springfield, MA, and part of the Springfield, MA MSA metro area, can serve as a solid cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the favorable financial metrics that make this area attractive for landlords seeking consistent rental income.
The Family Monthly Rent (FMR) for ZIP 01151 in fiscal year 2024 is set at $1450. In contrast, the market rent for the area stands at $1,296. This creates a positive spread of $154 per month, which means that landlords participating in the Section 8 program can expect higher rental income compared to the local market rates. This advantage is significant because it allows landlords to cover their mortgage payments, maintenance costs, and other expenses while still generating a profit.
Additionally, the median home value in ZIP 01151 is $284,067. While this figure is important for understanding the overall property values in the area, it does not directly impact the cash flow potential as much as the FMR and market rent figures do. The high FMR relative to market rent ensures that landlords receive adequate compensation to maintain their properties and manage them effectively.
The ZIP code also has a renter share of 53.3%, indicating a substantial portion of the population relies on renting. This statistic supports the idea that there is a stable demand for rental properties, which further strengthens the case for ZIP 01151 as a cash-flow anchor. With a median income of $55,324, the area has enough economic activity to sustain a steady stream of tenants who qualify for Section 8 assistance.
Although the data provided does not include percentage price-cut shares or days on market (DOM), these factors are less relevant when considering ZIP 01151 as a cash-flow anchor. The primary focus should be on the guaranteed rental income through the Section 8 program, which offers a reliable source of cash flow compared to the local market conditions.
In summary, ZIP 01151 is best suited as a cash-flow anchor in a Section 8 portfolio strategy due to the positive spread between the FMR and market rent, along with a significant renter share and median income levels that support a steady demand for rental properties.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.