Section 8 Fair Market Rent (FMR) for ZIP 01201 - 2027

Investment Score for ZIP 01201

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,350
1 Bedroom	$1,360
2 Bedrooms	$1,750
3 Bedrooms	$2,310
4 Bedrooms	$2,930
5 Bedrooms	$3,399
6 Bedrooms	$3,807
7 Bedrooms	$4,112
8 Bedrooms	$4,318

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,360	$200,070	0.68%	D
2BR	$1,750	$264,337	0.66%	D
3BR	$2,310	$312,614	0.74%	D
4BR	$2,930	$387,981	0.76%	D
5BR	$3,399	$479,673	0.71%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 01201 (Pittsfield, MA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 01201 in Pittsfield, Massachusetts, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1680 per month. This figure represents 28.4% of the median household income in the area, which stands at $71,093. However, the actual rental prices can be significantly higher. The Zillow median price for a two-bedroom rental property in this ZIP code is $258,386, which translates to a monthly rent of approximately $1280 based on typical mortgage payments and property management costs. Given that the Zillow median price is 12.8 times the FMR, it suggests that the actual rental market is much more expensive than the FMR. This discrepancy creates significant constraints for voucher holders. They may struggle to find properties where landlords will accept their vouchers due to the high cost of living relative to the FMR. Additionally, the limited number of units available at or below the FMR means that voucher holders often face competition and may have to settle for lower-quality housing options. #### Affordability & Renter Profile In ZIP code 01201, 36.5% of the population are renters, indicating a substantial demand for rental properties. With a population of 44,848, this translates to roughly 16,425 renters. The occupancy rate of 91.7% suggests that the rental market is relatively tight, with most available units being occupied. This tightness implies that there is little room for new entrants into the rental market without increasing the supply of units. Given the median household income of $71,093, the affordability of housing is a critical issue. A two-bedroom unit priced at $1280 per month would consume about 21.5% of the median income, which is still a considerable portion. However, the actual median rental price of $1280 is far below the Zillow median price of $258,386, indicating that many renters are likely paying well above the FMR. This situation makes it challenging for low-income households to find affordable housing, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 01201 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1680, but the actual median rental price is $1280. This suggests that investors could potentially achieve cash flow positive outcomes if they can secure properties at or below the actual median rental price. However, given the high Zillow median price, purchasing a property outright would likely result in a negative cash flow unless the investor can leverage financing strategies that keep the effective rental price close to the FMR. The investment grade for this ZIP code would depend on the ability to acquire properties at a reasonable cost and manage them effectively. If an investor can find properties that are undervalued or negotiate lower purchase prices, the potential for positive cash flow increases. However, the high price-to-FMR ratio of 12.8x indicates that the market is overpriced relative to the FMR, which could make it difficult to find profitable investments. #### Specific Actionable Insights 1. **Target Undervalued Properties**: Investors should focus on finding properties that are priced below the Zillow median price of $258,386. This could involve looking for distressed properties, negotiating with sellers, or considering areas within the ZIP code that are less desirable but still within acceptable proximity to amenities and services. 2. **Maximize Rental Income**: To ensure profitability, investors need to maximize rental income while staying within the FMR guidelines. This might mean offering additional amenities or services that justify slightly higher rents, such as on-site laundry facilities, modern appliances, or enhanced security features. 3. **Consider Multi-Family Units**: Given the high FMR for larger units (e.g., 3BR and 4BR), investing in multi-family buildings could provide a better return. These units are more likely to be rented out at or near the FMR, and the economies of scale in managing multiple units can improve overall profitability. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 01201 is to **Hold**. While there are opportunities to find undervalued properties and maximize rental income, the high price-to-FMR ratio and tight rental market make it challenging to achieve positive cash flow consistently. Investors should proceed cautiously, focusing on strategic acquisitions and property management practices that can enhance profitability within the constraints of the FMR.

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.