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 | $1,300 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,270 | $713,969 | 0.32% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 01258 in Florida provides insights into potential investment opportunities for landlords and small-portfolio investors. With the Fair Market Rent (FMR) for a 2-bedroom apartment set at $1340 annually for fiscal year 2024, we can derive an implied gross yield based on the median home value of $716,863.
To calculate the gross yield, we first need to understand that the FMR represents the maximum rental subsidy paid by the government. For a 2BR unit, this would equate to $1340 per month if annualized. Given the median home value, the gross yield can be calculated as follows:
The monthly FMR of $1340 translates to an annual rental income of $16,080. Dividing this by the median home value of $716,863 gives us an implied gross yield of approximately 2.24%. This figure is derived directly from the provided FMR data and should be considered in the context of the local rental market dynamics.
However, the market rent for the area is listed as N/A, indicating that there is insufficient data to determine the actual market rent rates. If we were to assume that market rents align closely with the FMR, the gross yield would remain at 2.24%. But, if market rents are higher, the gross yield would increase proportionally. Without specific market rent figures, it's challenging to provide a precise comparison; however, we can infer that market rents typically exceed FMRs, suggesting a potentially higher gross yield in reality.
The renter density in ZIP 01258 stands at 12.8%, which is relatively low. This implies that a significant portion of the housing stock is owner-occupied, reducing the pool of available tenants for rental properties. Additionally, the N/A-day Days on Market (DOM) indicates incomplete data regarding how quickly rental properties are leased, which could affect vacancy rates and thus the overall yield.
In conclusion, based on the provided FMR data, the gross yield for a 2BR unit in ZIP 01258 is approximately 2.24%. While this is a useful benchmark, investors should consider the broader market conditions, including the low renter density and the lack of specific market rent data, when evaluating potential returns. The actual gross yield is likely to be higher if market rents surpass the FMR, but the exact figure cannot be determined without additional market-specific data.
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.