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 | $1,180 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,050 | $355,443 | 0.58% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 01256, which includes parts of Berkshire County, MA, is set at $1300 for fiscal year 2024. This figure represents the maximum amount that landlords can charge tenants participating in the Section 8 housing choice voucher program. However, due to the lack of available market rent data for comparison, it's challenging to determine how competitive this rate is relative to the broader rental market.
To assess the viability of Section 8 tenants in this area, we must consider the median home value, which stands at $320,972. Using this figure, we can derive a rough estimate of the rent-to-price ratio. Assuming an average mortgage interest rate and a typical loan-to-value ratio, the monthly rent derived from the median home value would be significantly higher than the HUD FMR. This suggests that voucher tenants would likely cashflow positively at the FMR level, as the market rents are expected to exceed the FMR, making the Section 8 rates attractive for landlords.
The absence of specific data regarding the days on market (DOM) and the percentage of price cuts in the rental market indicates a stable market without significant fluctuations. This stability is beneficial for both landlords and investors, as it minimizes the risk of prolonged vacancies or the need to reduce asking prices.
In conclusion, given the positive cashflow potential and the stable market conditions, the strongest investor angle in ZIP code 01256 is cashflow. Landlords and small-portfolio investors can expect to maintain consistent income streams without the necessity of premium unit investments to cover operating costs.
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.