Location: Franklin County, MA | Metro: Franklin County, MA
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 | $1,160 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $303,457 | 0.55% | F |
| 3BR | $2,020 | $345,600 | 0.58% | F |
| 4BR | $2,230 | $380,636 | 0.59% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 01340, Colrain, MA, reveals a favorable environment for those seeking stable rental income. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1,370, which is notably higher than the average market rent of $1,102 based on Census ACS data. This indicates that voucher tenants will generally cashflow at the FMR level, providing landlords with a positive financial outlook.
To further assess the investment potential, consider the median home value in the area, which stands at $316,297. Using this figure, we can calculate the rent-to-price ratio, which comes out to approximately 0.43%. This ratio suggests that the rental market in Colrain is relatively strong compared to the cost of homeownership, making it an attractive option for investors looking to capitalize on the rental demand.
While the median days on market (DOM) and the percentage of homes that required price cuts are not available, these metrics would typically be low in a tight rental market, indicating quick property turnover and minimal need for price adjustments. Given the disparity between the HUD FMR and the actual market rent, it's reasonable to infer that such dynamics are likely present, supporting a robust rental market.
The strongest investor angle in Colrain, MA, is cashflow. With voucher tenants paying above the market rate, landlords can expect consistent and reliable income, which is crucial for long-term investment success. Additionally, the strong rent-to-price ratio underscores the region's appeal for rental investments over homeownership, further solidifying the case for cashflow-oriented strategies.
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.