Location: Springfield, MA | Metro: Springfield, MA MSA
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 | $1,470 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,610 |
| 4 Bedrooms | $2,760 |
| 5 Bedrooms | $3,202 |
| 6 Bedrooms | $3,586 |
| 7 Bedrooms | $3,873 |
| 8 Bedrooms | $4,067 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,660 | $265,730 | 0.62% | D |
| 2BR | $2,100 | $365,718 | 0.57% | F |
| 3BR | $2,610 | $428,079 | 0.61% | D |
| 4BR | $2,760 | $458,990 | 0.6% | D |
U.S. Census Bureau data (2024)
The rent math for ZIP 01521, located in Holland, Massachusetts, within the Springfield, MA MSA metro area, does not align perfectly but offers a reasonable margin. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1590, whereas the Census ACS indicates a market rent of $1750. This suggests that landlords can expect a slight premium over the FMR when setting rental prices.
Regarding acquisition affordability, the median home value in ZIP 01521 is $370,151. However, due to limited data on the number of days on market (DOM) and the percentage of homes requiring price cuts, it's challenging to provide a comprehensive analysis of how quickly properties are sold and at what price point. Despite these gaps, the median home value offers a benchmark for potential investments.
Tenant demand in ZIP 01521 is relatively low, given its total population of 2,583 and only a 5.0% renter share. This means that fewer residents are likely to be seeking rental housing, which could impact the availability of tenants.
Verdict: ZIP 01521 presents a mixed picture for small-portfolio investors and landlords. While there is a modest opportunity for higher rents compared to the FMR, the limited tenant base and lack of detailed market data on property sales suggest caution. Investors should carefully consider the local market dynamics and possibly look into other areas within the Springfield, MA MSA metro region to diversify their portfolios and ensure a steady stream of rental income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.