Location: Pittsfield, MA | Metro: Pittsfield, MA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,340 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 01229 in Florida is based on the Fair Market Rent (FMR) for a 2-bedroom apartment set at $1250 annually for fiscal year 2024. However, the market rent and median home value for this area are currently not available, which limits the full scope of the analysis.
To calculate the gross yield, we use the annualized FMR of $1250. If we assume the median home value is around the typical range for similar properties in the state, let's hypothetically consider it at $250,000 for the sake of illustration. In this scenario, the gross yield would be 0.5%, calculated as follows: $1250 / $250,000 = 0.005 or 0.5%. This is a very low gross yield and suggests that the property would likely generate a negative cash flow if financed through traditional means.
Given the lack of specific market rent data, it's challenging to provide an accurate comparison. However, if we were to consider a higher market rent, say $1500 per month, which is $18,000 annually, the gross yield would increase significantly. Assuming the same hypothetical median home value of $250,000, the gross yield would then be 7.2%, calculated as $18,000 / $250,000 = 0.072 or 7.2%. This is a much more favorable gross yield for potential investors.
The renter density of 11.3% indicates a relatively low proportion of renters in the area, which could mean that demand for rental units, including those under Section 8, might be limited. Additionally, the absence of specific days on the market (DOM) data makes it difficult to gauge how quickly units might be leased. Typically, a lower DOM number suggests stronger demand, but without this figure, we can only speculate.
In conclusion, the gross yield based on the Section 8 FMR is significantly lower than what might be expected from market rents. Given the limited data on market conditions, the gross yield derived from the FMR scenario is less realistic for investment purposes. Investors should seek additional information on local market rents and days on the market to make a more informed decision about the potential profitability of Section 8 properties in ZIP 01229.
Data Sources: FMR data from HUD (2027). 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.