Location: Springfield, MA | Metro: Springfield, MA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,260 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
The economics of Section 8 housing in ZIP code 01152, located in Springfield County, Massachusetts, are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1340 per month for fiscal year 2024. This rate is specifically tailored for this ZIP code, reflecting the local rental market conditions.
A landlord should understand that the actual amount paid by the Housing Choice Voucher program is a combination of the tenant's contribution and the government subsidy. Typically, the tenant is expected to pay 30% of their adjusted monthly income towards rent. If we assume an average adjusted monthly income of $1500 for a tenant in this area, they would contribute approximately $450 towards rent ($1500 x 0.3).
The remaining amount is subsidized by the government. For a two-bedroom unit priced at the SAFMR of $1340, the government would cover the difference between the tenant's contribution and the total rent. In this case, it would be $890 ($1340 - $450). Additionally, there are utility allowances that vary based on the size of the unit and the region. For a two-bedroom apartment in this ZIP code, the utility allowance is typically around $300 per month.
Thus, the total reimbursement a landlord can expect from the government for a two-bedroom unit would be $1190 per month ($890 for rent plus $300 for utilities). This leaves a gap of $150 between the SAFMR and the total reimbursement ($1340 - $1190).
This gap represents the financial shortfall a landlord must cover each month to participate in the Section 8 program. It is important to note that while this gap exists, many landlords find the program beneficial due to the guaranteed government subsidy and the stability it provides. However, the decision to accept vouchers should be made with a clear understanding of the economic realities involved.
In summary, for a two-bedroom apartment in ZIP 01152, landlords will receive a total of $1190 per month from the government, leaving them responsible for covering the remaining $150 to meet the SAFMR of $1340. This results in a reimbursement gap of $150 per month.
Data Sources: FMR data from HUD (2027).
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.