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 | $1,270 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,760 |
| 5 Bedrooms | $3,202 |
| 6 Bedrooms | $3,586 |
| 7 Bedrooms | $3,873 |
| 8 Bedrooms | $4,067 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,280 | $247,620 | 0.52% | F |
| 2BR | $1,650 | $349,934 | 0.47% | F |
| 3BR | $2,170 | $610,714 | 0.36% | F |
| 4BR | $2,760 | $750,814 | 0.37% | F |
| 5BR | $3,202 | $1,183,154 | 0.27% | F |
U.S. Census Bureau data (2024)
A skeptical investor might raise several concerns regarding ZIP 01240 (Lenox, MA) when considering a Section 8 investment. Here are some common objections and the data that addresses them.
Objection 1: Will FMR $1440 (zip FY 2024) cover the mortgage on a $599,614 home?
The Fair Market Rent (FMR) for ZIP 01240 is $1440, which represents the gross rent for a standard-quality unit. To determine if this amount covers the mortgage, consider current mortgage rates. For a $599,614 home, a 30-year fixed mortgage with an interest rate around 6.37% would result in a monthly principal and interest payment of approximately $3,180. This figure does not include property taxes, homeowner association fees, home insurance, private mortgage insurance (if applicable), and utilities. Therefore, the FMR of $1440 alone will not cover the mortgage on a $599,614 home. However, it's important to note that the Housing Choice Voucher program aims to cover a significant portion of the rent, typically up to 30% of the household's income, with the tenant paying the remainder.
Objection 2: Is there enough renter demand at 28.3%?
The renter demand in Lenox, MA, is reported to be 28.3%. While this percentage is relatively low, it still indicates a substantial number of potential tenants. Additionally, the demand for affordable housing can often exceed the supply, especially in areas where housing costs are high. The data does not provide a complete picture of the rental market dynamics, such as vacancy rates or competition from other affordable housing options. However, the presence of a dedicated affordable housing program suggests a need for such units.
Objection 3: Will vouchers keep pace with $1,091 market rents?
The market rent in ZIP 01240 is $1,091, which is slightly below the FMR of $1440. The Housing Choice Voucher program adjusts its payments annually based on local market conditions. While there is no guarantee that vouchers will always match the exact market rent, the program aims to ensure that rents remain affordable for low-income households. In Lenox, MA, the gap between the FMR and the market rent suggests that vouchers are likely to cover a significant portion of the rent, making the investment viable. However, the specific pace at which vouchers adjust to market rents is not detailed in the available data.
In summary, while the FMR of $1440 alone will not cover the mortgage on a $599,614 home, the Housing Choice Voucher program is designed to subsidize a large portion of the rent. The renter demand at 28.3% indicates a reasonable pool of potential tenants, though more detailed market analysis would be beneficial. Lastly, vouchers are expected to keep pace with market rents, but the exact adjustment rate is not specified in the current data. These points should be considered carefully before making any investment decisions in ZIP 01240.
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.