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Massachusetts market guide
DSCR loans in Springfield, MA
Rental financing for Springfield investors, qualified on the property's rent.
Springfield is a MA market where the rent-to-payment ratio decides the loan. Median rent is $1,144, median home value is $245,000 and 50% of households rent.
Springfield rents, values and tenants
Two Census medians frame the Springfield rental market: gross rent of $1,144 a month, which is well below the Massachusetts median of $1,762, and a home value of $245,000, which is well below the Massachusetts median of $562,100. Put the two medians together and Springfield shows a gross yield of 5.6%, neither especially thin nor especially rich. Because the rent number covers apartments as well as houses, expect single-family rentals to land above or below it.
| Indicator | Massachusetts | Springfield | Difference |
|---|---|---|---|
| Tax as a share of home value | 1.07% | 1.51% | +41% |
| Annual property tax bill, median | $5,992 | $3,695 | -38% |
| Household income, median | $103,960 | $52,656 | -49% |
| Typical owner-occupied value | $562,100 | $245,000 | -56% |
| Typical monthly rent | $1,762 | $1,144 | -35% |
| Persons per household | 2.44 | 2.58 | |
| Share in 2-4 unit buildings | 20.0% | 27.7% | +39% |
| Share of homes detached | 51.1% | 44.9% | -12% |
| Long commuters, 45 min plus | 21.5% | 6.4% | -70% |
| Degree holders, age 25+ | 47.3% | 20.5% | -57% |
| Workers on their own account | 8.8% | 6.9% | -21% |
| Renters paying 30%+ of income | 51.8% | 57.7% | +12% |
| Units sitting vacant | 8.1% | 7.1% | -12% |
| Typical construction year | 1964 | 1952 | |
| Households that rent | 37.5% | 50.4% | +34% |
| Residents (Census estimate) | 7,044,056 | 154,749 |
A renter-heavy city, Springfield has 50.4% of households renting (well above the Massachusetts median of 37%), which is good for demand and a reminder to check rent comparables carefully. Household income runs a median $52,656 (well below the Massachusetts median of $103,960), while 58% of renters spend 30 percent or more of income on housing.
Homes, buildings and vacancies in Springfield
Buildings with two or more units make up about 49% of Springfield's housing, including 28% in two to four unit buildings and 9% in buildings of five to 19 units. With a median build year of 1952, older roofs, plumbing and electrical are the norm and inspection findings drive the numbers.
Use vacancy as a reality check: 7% of all units are vacant in Springfield, and the rental vacancy rate is 3.0%.
Underwriting angles in Springfield
A 5.6% gross yield makes Springfield a market where the ratio is achievable but not automatic. A few hundred dollars of extra insurance or dues can decide a borderline file. Age is the main physical risk here: median year built 1952 points to deferred maintenance in a share of listings. A large renter population (50%) supports leasing, though it also means many competing landlords, so condition and price positioning count.
The payment side of the Springfield ratio
The Census reports median real estate taxes paid of $3,695 in Springfield, well below the Massachusetts median of $5,992. Against the median value that is an effective rate of roughly 1.51%, compared with 1.07% for Massachusetts as a whole. At the median rent that tax bill takes roughly 27% of a year's rent before insurance, dues or interest.
FEMA's National Risk Index (version 1.20, December 2025) rates Hampden County as relatively moderate overall for natural hazard risk, with riverine flooding (relatively high), ice storms (relatively high) and hurricanes (relatively high) among its leading hazards.
| Hazard in Hampden County, FEMA index | Level |
|---|---|
| Strong wind exposure | Relatively High |
| Hurricanes exposure | Relatively High |
| Ice storms exposure | Relatively High |
| Riverine flooding exposure | Relatively High |
| Social vulnerability score | Relatively High |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Insurance belongs in the ratio from day one, so get a landlord quote for the Springfield address and ask about roof age, wind or hail deductibles and flood cover.
Running the numbers in Springfield
At the city medians a DSCR file in Springfield has $836 a month after taxes to cover principal, interest, insurance and dues if the ratio is 1.00, or $607 if the ratio is 1.25. Those two numbers show why insurance quotes and tax estimates come first.
Rental rules for Springfield, MA
We have not confirmed a city-specific rental registration or nightly-stay permit program for Springfield, so check with the city and with Hampden County before you buy, and look at any HOA or condominium rules that can be stricter than the city's. On lodging taxes, a Springfield host should read this first. Massachusetts has required short-term rental operators to register with the Department of Revenue since July 1, 2019, and applies the room occupancy excise to rentals of 31 days or less, with local taxes and fees added where a city or town has adopted them.
The return clock runs 30 days from move-out in Massachusetts, so Springfield landlords should keep move-in photos and repair receipts. Rent increases in Massachusetts: Rent control is prohibited statewide by the Massachusetts Rent Control Prohibition Act (c. 40P), which bars rent-control schemes except voluntary ones.
Neighbors of Springfield by the numbers
Looking across the table, values run from $223,600 (New Britain) up to $411,000 (West Hartford), and Springfield lands at $245,000.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| New Britain | 55% | $5,846 | $223,600 | 74,223 | $1,253 |
| West Hartford | 33% | $9,598 | $411,000 | 63,620 | $1,756 |
| Hartford | 74% | $4,603 | $228,600 | 121,127 | $1,269 |
| Manchester | 43% | $5,652 | $247,100 | 59,635 | $1,519 |
| Springfield | 50% | $3,695 | $245,000 | 154,749 | $1,144 |
Who rents in Springfield
Self-employment accounts for 6.9% of Springfield's workforce, so many local investors earn income that a standard payroll-based mortgage underwrites poorly. Other workforce markers: government workers are about 16% of employment, 20% of adults hold a bachelor's degree or higher and 6% of commuters travel 45 minutes or more.
Campuses such as Western New England College, Springfield College, American International College and Amherst College pull tenants into Springfield, and landlords near them can plan around move-in seasons. Springfield offers interstate access via I-91 and I-90 and air service through Bradley International Airport and Westfield-Barnes Regional Airport, details that affect commute times and how easily a distant investor can inspect a property.
From a Springfield listing to a loan
Before you offer on a Springfield property, test the ratio in the calculator, then apply now or request a DSCR quote.
More Massachusetts markets
- All Massachusetts DSCR loans
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- DSCR loans in New Britain, CT
- Every market we cover
Where these facts come from
- ACS 2020 to 2024 estimates for Springfield
- Federal hazard index, MA
- Background reading: Springfield, Massachusetts
- Massachusetts security deposit statute (M.G.L. c. 186, § 15B(1)(b), (1)(d), (2), (3), (4), (5))
- Mass.gov TIR 19-3 (Massachusetts)
- For nightly stays in Springfield: Room occupancy excise
We took the Springfield data from Census ACS five-year tables for 2020 to 2024, estimates with margins of error. Landlord rules for Springfield rest on Massachusetts statutes and the CC BY 4.0 RedFlagLease dataset. Our check date is October 2026, so look for newer Springfield rules before you commit.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
How does a lender pick the rent for a Springfield DSCR file?
Underwriters take the lease if one exists and compare it with the appraisal's rent estimate; the lower figure often governs. Springfield median rent is $1,144.
Does the ratio in Springfield include taxes and dues?
Yes, the payment includes principal, interest, taxes, insurance and association dues. At the Springfield median rent of $1,144, a 1.25 ratio allows about $915 in total payment, of which roughly $308 a month goes to median taxes.
Are Springfield property taxes high for Massachusetts?
Typical owners pay $3,695, or 1.51% of home value, with Massachusetts overall at 1.07%. Do not assume the seller's bill carries over to you.
Can nightly stays at a Springfield property support a DSCR file?
Depending on the lender, yes, if the property may legally be used that way and income is documented. Confirm the local permit, association rules and Massachusetts lodging taxes before you underwrite nightly income in Springfield.
What are the security deposit rules for a Massachusetts landlord?
Start with M.G.L. c. 186, § 15B(1)(b), (1)(d), (2), (3), (4), (5). Return window: 30 days. Talk to a Massachusetts attorney for a lease form that matches.
Should I worry about hazards at a Springfield property?
At the county level FEMA calls overall risk relatively moderate. Insurance, not the index, shows up in the ratio, so price a policy for the Springfield address.
Can a company be the borrower on a Springfield purchase?
You do not need one, and many investors close in an entity. If you use an LLC, the lender asks for formation documents and usually a personal guaranty. Talk to your attorney and accountant about structure for a Massachusetts property.