Location: Berkshire County, MA | Metro: Pittsfield, MA HUD Metro FMR Area
| 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 |
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). 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.