Location: Berkshire County, MA | Metro: Berkshire County, MA (part) 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 | $1,260 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,670 | $384,364 | 0.43% | F |
| 3BR | $2,280 | $572,840 | 0.4% | F |
| 4BR | $2,790 | $666,399 | 0.42% | F |
U.S. Census Bureau data (2024)
The potential risks for a first-time Section 8 landlord in ZIP code 01253, Otis, MA, are significant and should be carefully considered before investing. Tenant turnover poses a challenge due to the discrepancy between the Fair Market Rent (FMR) and the local rental market. The FMR for FY 2024 is set at $1630, but if the local market rent is lower, landlords might face difficulties retaining tenants who are accustomed to higher subsidies.
Vacancy exposure is another critical issue. With no data available on the days on market (DOM), it's difficult to gauge how quickly a property can be rented out once vacant. However, given that Otis has a typical home value of $514,817, which is relatively high, landlords may find it challenging to attract enough Section 8 tenants to fill vacancies promptly. This is exacerbated by the median income of $116,806, indicating that many residents may not qualify for the program, leading to potential vacancy periods.
Deferred maintenance is also a concern. The high typical home value suggests that properties may require substantial investments to maintain them up to standard, especially when dealing with subsidized housing. Landlords must be prepared to spend on repairs and upkeep, as Section 8 requires homes to meet certain quality standards.
Despite these risks, there are factors that mitigate the overall investment risk. The renter share in Otis is 13.5%, which is relatively high. High renter density often translates into higher demand for housing vouchers, potentially stabilizing occupancy rates over time. Additionally, the strong local economy, reflected in the high median income, can support a steady flow of tenants who may benefit from the Section 8 program.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.