Location: Western Worcester County, MA | Metro: Worcester, 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 | $1,430 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,860 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,860 | $381,523 | 0.49% | F |
| 3BR | $2,300 | $472,625 | 0.49% | F |
| 4BR | $2,550 | $575,551 | 0.44% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 01068, which includes Oakham, MA, within the Western Worcester County, MA HUD Metro Fair Market Rent (FMR) area, does not favor landlords. The HUD FMR for the area is set at $1660 for fiscal year 2024. However, the Census American Community Survey (ACS) reports the average market rent at $1,174. This discrepancy means that landlords relying on Section 8 vouchers will face significant shortfalls if they aim to charge market rates.
Acquisition of properties remains relatively affordable in ZIP 01068. The median home value stands at $474,952, which is within reach for many small-portfolio investors. Unfortunately, the data on days on market (DOM) and the percentage of homes that were listed with a price cut is not available, making it difficult to assess the speed and ease of property acquisition. Nonetheless, the median home value suggests that buying into this market is feasible without requiring exorbitant capital investment.
Tenant demand is limited in ZIP 01068. With a total population of 1,639, only 8.4% of residents are renters. This translates to approximately 137 potential tenants. Given the small number of renters in the area, landlords should expect competition for tenants to be low, but the overall pool of potential renters is also quite shallow. This could impact the ability to fill vacancies quickly and maintain steady cash flow.
In summary, while the median home value in ZIP 01068 offers an affordable entry point for property acquisition, the mismatch between the HUD FMR and actual market rents presents a challenge for landlords seeking to maximize their returns. Additionally, the limited tenant demand due to the small renter share of the population suggests that securing long-term, stable tenancy may be difficult. Landlords should carefully consider these factors before investing in this area, especially if they are relying on Section 8 vouchers to cover rental income.
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.