Section 8 Fair Market Rent (FMR) for ZIP 01005 - 2027

Location: Western Worcester County, MA | Metro: Worcester, MA HUD Metro FMR Area

Investment Score for ZIP 01005

F
Monthly Rent (2BR)
$1,860
Median Price (2BR)
$343,855
1% Rule
0.54%
Annual Yield
6.49%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,430
1 Bedroom$1,440
2 Bedrooms$1,860
3 Bedrooms$2,340
4 Bedrooms$2,760
5 Bedrooms$3,202
6 Bedrooms$3,586
7 Bedrooms$3,873
8 Bedrooms$4,067

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,860 $343,855 0.54% F
3BR $2,340 $412,574 0.57% F
4BR $2,760 $468,538 0.59% F
5BR $3,202 $466,583 0.69% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
5,204
Median Household Income
$111,148
Housing Units
2,027
Renter Percentage
19.8%
Occupancy Rate
91.9%
Renter Occupied
368

A household in ZIP 01005, Barre, Massachusetts, earns a median income of $111,148. The market rate for rent is $1,591 according to the Census ACS data. To determine if this rent is affordable, we must consider the household budget. Typically, housing costs should not exceed 30% of a household’s income to be considered affordable. In Barre, a household would spend approximately 37% of their monthly income on rent at the market rate, which exceeds the recommended threshold.

The Federal Market Rent (FMR) for ZIP 01005 in fiscal year 2024 is set at $1,500. This is slightly below the market rate but still represents a significant portion of the median income. If a household relies on a Section 8 voucher, they would pay approximately 30% of their income towards rent, with the rest covered by the voucher. However, the difference between the market rate and the FMR indicates an affordability gap for those without assistance.

In Barre, 19.8% of the 5,204 residents are renters. This means there are around 1,031 renters in the area. Given the affordability gap, many of these renters may struggle to pay the market rate without some form of assistance. Landlords in Barre will face competition from properties that accept Section 8 vouchers, especially as the cost of living continues to rise.

The takeaway for landlords is clear: accepting Section 8 vouchers can provide a steady stream of income and reduce vacancy rates, but it comes with regulatory requirements. Cash-paying tenants might offer higher rents, but the competition for them is fierce, and landlords must ensure the property remains attractive and affordable to this segment. Balancing both strategies based on the local rental market dynamics and tenant needs is key to success in Barre, MA.

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.