Location: Berkshire County, MA | Metro: Berkshire County, MA (part) HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,580 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,440 |
| 5 Bedrooms | $3,990 |
| 6 Bedrooms | $4,469 |
| 7 Bedrooms | $4,827 |
| 8 Bedrooms | $5,068 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 01264 in Florida provides a clear view of the potential returns for landlords and small-portfolio investors. Using the annualized Fair Market Rent (FMR) for a 2-bedroom unit at $1550 per month, the annual rental income would be $18,600. Given the median home value of $658,515, the implied gross yield for the Section 8 scenario is approximately 2.83%. This calculation is derived by dividing the annual rental income ($18,600) by the median home value ($658,515).
In contrast, using the market rent figure of $1,075 per month from the Census ACS data, the annual rental income would be $12,900. The implied gross yield for this market rent scenario is approximately 1.96%, calculated similarly by dividing the annual rental income ($12,900) by the median home value ($658,515).
The difference between these two gross yields highlights the potential benefits of participating in the Section 8 program. However, it's important to consider the context of the local real estate market. With a renter density of 17.0%, it suggests that only a portion of the housing stock is occupied by renters, which could impact the demand for Section 8 properties. Additionally, the lack of data on Days on Market (DOM) makes it challenging to assess how quickly a property might be leased under either scenario.
Given the higher gross yield from the Section 8 scenario, it appears more attractive at first glance. However, the actual feasibility depends on the willingness of tenants to enter the Section 8 program and the availability of vouchers in the area. The 17.0% renter density indicates a relatively low demand for rental properties, which could affect the occupancy rates and thus the effective yield. For a more accurate assessment, investors should consider these factors alongside the implied gross yields of 2.83% for Section 8 and 1.96% for market rent.
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.