Location: Pittsfield, MA | Metro: Pittsfield, MA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,460 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $3,160 |
| 5 Bedrooms | $3,666 |
| 6 Bedrooms | $4,106 |
| 7 Bedrooms | $4,434 |
| 8 Bedrooms | $4,656 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 01242 in Florida is based on the Fair Market Rent (FMR) for a two-bedroom apartment set at $1500 annually for FY 2024. The median home value in this area is currently unavailable, as are specific figures for market rent and renter density. Additionally, the Days on Market (DOM) data is also not available.
To calculate the implied gross yield, we first need to establish the annual rental income and compare it against the median home value. In the case of Section 8, the annualized rental income for a two-bedroom unit is $1500. However, without the median home value, we cannot provide an exact cap rate for this scenario. Typically, the cap rate is calculated as the annual rental income divided by the property's value. Therefore, if the median home value were known, we could calculate the gross yield as follows:
Implied Gross Yield for Section 8 Scenario:
Without the market rent figure, it's impossible to derive an implied gross yield for the market rent scenario. Normally, this would be compared against the Section 8 gross yield to give investors a sense of how the two options stack up. The lack of specific market rent data means that we can only hypothesize about the relative attractiveness of the Section 8 program versus market rates.
The absence of renter density and DOM figures makes it difficult to assess the likelihood of finding tenants quickly and maintaining occupancy. These factors are crucial in determining the feasibility of a Section 8 investment. A higher renter density might indicate a greater pool of potential tenants, while a lower DOM suggests quicker turnover and less time spent managing vacancies.
Given the limited data, the Section 8 scenario provides a stable, government-backed income stream at $1500 annually. This is particularly attractive in areas where market rents are unpredictable or lower due to economic conditions. However, the lack of market rent and median home value figures prevents a direct comparison and a definitive conclusion on which scenario is more realistic.
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.