Location: Amherst Town-Northampton, MA | Metro: Amherst Town-Northampton, MA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,330 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,820 |
| 5 Bedrooms | $3,271 |
| 6 Bedrooms | $3,664 |
| 7 Bedrooms | $3,957 |
| 8 Bedrooms | $4,155 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP 01243 is set at $1390 for fiscal year 2024. This figure represents the median rent that a tenant could pay. However, it does not directly cover the mortgage on a $335,349 home. To assess whether this FMR is sufficient, one must consider the interest rates and terms of the mortgage. Assuming a typical 30-year fixed-rate mortgage with an interest rate of around 5%, the monthly payment for a $335,349 home would be approximately $1800, which exceeds the FMR. Therefore, relying solely on the FMR to cover mortgage payments would result in a shortfall.
The rental demand in ZIP 01243 stands at 2.6%. This percentage indicates the proportion of the total housing stock that is rented out. While this may seem low, it is important to understand the context of the local market. With a slightly lower than average population density, the demand for rental properties might naturally be less intense. However, the presence of 784 rental listings suggests that there is a market for rentals. The key metric to watch is the occupancy rate of these rental units. If the occupancy rate remains high, it signals sustained demand despite the relatively low percentage of the housing stock being rented.
Vouchers are another critical aspect of the rental market in ZIP 01243. Given that the data does not provide specific information on how voucher amounts compare to market rents, it is challenging to definitively state whether vouchers will keep pace with market rents. However, the U.S. Department of Housing and Urban Development (HUD) typically adjusts voucher amounts annually based on changes in the local housing market. Investors should monitor HUD announcements and local housing trends to ensure that voucher amounts remain competitive with market rents.
To summarize, while the FMR of $1390 does not fully cover the mortgage on a $335,349 home, the rental market in ZIP 01243 shows some resilience with 784 rental listings. The sustainability of rental demand depends on maintaining high occupancy rates. Lastly, although the data does not explicitly detail voucher amounts, they are generally adjusted to reflect market conditions, ensuring that tenants can afford suitable housing.
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.