Location: Western Worcester County, MA | Metro: Western Worcester County, MA HUD Metro FMR Area
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 | $1,280 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,320 | $458,978 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 01037, located in the Western Worcester County, MA HUD Metro FMR Area, can serve as a strategic component within a Section 8 portfolio. This area's suitability for such an investment is best described as a cash-flow anchor. The rationale behind this classification is rooted in the significant spread between the Fair Market Rent (FMR) and the actual market conditions.
In fiscal year 2024, the FMR for ZIP 01037 is set at $1450. While the exact market rent figures are not available, the median home value in the area stands at $442,426. This suggests that rental properties here are likely to command higher rents than the FMR, making it a reliable source for positive cash flow. Landlords and small-portfolio investors can leverage this discrepancy to ensure steady, predictable returns on their investments.
The high median home value indicates a robust local economy capable of supporting rental property values. Despite the lack of specific market rent data, the fact that the FMR is notably lower than what could be expected based on the median home value points towards a strong potential for cash flow generation. Investors should focus on properties that can be rented out at rates above the FMR but still below market rates to maximize their returns while remaining competitive in the Section 8 housing voucher program.
Furthermore, the 10.7% renter share and median income of $74,722 indicate a moderate demand for rental properties and a middle-class demographic. This balance ensures a stable tenant base without the volatility associated with areas heavily reliant on rental housing. In conclusion, ZIP 01037 is best suited as a cash-flow anchor within a Section 8 portfolio strategy due to the substantial difference between FMR and expected market rents, along with a stable economic foundation.
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.