Location: Berkshire County, MA | Metro: Pittsfield, MA HUD Metro FMR Area
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 | $1,320 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,330 | $155,025 | 0.86% | C |
| 2BR | $1,730 | $315,393 | 0.55% | F |
| 3BR | $2,320 | $401,166 | 0.58% | F |
| 4BR | $2,890 | $539,054 | 0.54% | F |
U.S. Census Bureau data (2024)
To integrate ZIP 01237, located in Lanesboro, MA, into a Section 8 portfolio strategy, it should be considered primarily as a cash-flow anchor. This classification is based on the significant spread between the Fair Market Rent (FMR) set by HUD at $1820 for fiscal year 2024 and the current market rent of $1,203. The FMR exceeds the market rent by $617 per month, indicating that properties in this ZIP can generate higher monthly cash flows when leased under the Section 8 program.
The median home value in ZIP 01237 is $369,771. While this figure might suggest potential for appreciation, the area's 0.1% price-cut share and N/A-day Days on Market (DOM) indicate limited market activity and low likelihood of rapid appreciation. Therefore, focusing on appreciation as a primary strategy would be less effective compared to leveraging the higher guaranteed rents provided by the Section 8 program.
ZIP 01237 also offers a diversification opportunity within a broader investment portfolio, with a 4.7% share of renters and a median household income of $90,898. However, the diversification benefit is overshadowed by the cash-flow stability and enhancement offered by the Section 8 program. The high FMR relative to market rent ensures that landlords can maintain steady income even if market conditions fluctuate.
In summary, ZIP 01237 is best positioned as a cash-flow anchor in a Section 8 portfolio strategy. The substantial difference between the HUD-set FMR and the local market rent provides a reliable source of income, which is crucial for landlords and small-portfolio investors looking to stabilize and increase their cash flows.
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.