Location: Franklin County, MA | Metro: Fitchburg-Leominster, 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 | $1,300 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,330 |
| 4 Bedrooms | $2,810 |
| 5 Bedrooms | $3,260 |
| 6 Bedrooms | $3,651 |
| 7 Bedrooms | $3,943 |
| 8 Bedrooms | $4,140 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,300 | $265,225 | 0.49% | F |
| 2BR | $1,680 | $306,625 | 0.55% | F |
| 3BR | $2,330 | $360,718 | 0.65% | D |
| 4BR | $2,810 | $375,835 | 0.75% | D |
| 5BR | $3,260 | $386,054 | 0.84% | C |
U.S. Census Bureau data (2024)
The median income in ZIP 01331, which encompasses Athol, Massachusetts, stands at $72,181. Given the market rate for rent is $1,160 according to the Census ACS, a household earning the median income would spend approximately 18% of their gross income on housing if they were to pay the market rate. This is based on the calculation of $1,160 being 18% of $72,181. While this percentage is manageable, it still leaves a significant portion of income allocated towards rent.
Comparatively, the Fair Market Rent (FMR) set by the zip code for fiscal year 2024 is $1,400. This means that a household earning the median income would need to allocate around 20% of their gross income to meet the FMR standard, a slight increase from the market rate. The discrepancy between the actual market rate and the FMR highlights an affordability gap for some renters, especially those who might be receiving subsidies or have lower incomes.
Athol has a rental population of 25.1%, equating to roughly 3,497 residents living in rented properties out of a total population of 13,922. This demographic indicates a moderate demand for rental housing, but the affordability gap suggests that competition among landlords could be fierce. Landlords may find themselves having to offer competitive pricing or additional amenities to attract tenants, particularly those who do not qualify for voucher assistance.
For landlords considering whether to accept vouchers or focus on cash-paying tenants, the key takeaway is clear: accepting vouchers can provide a steady stream of income, albeit at a lower rate than the FMR allows, while relying solely on cash-paying tenants might expose you to greater financial risk due to the affordability gap. However, cash-paying tenants could potentially offer higher rents than the voucher rates, thus increasing profitability per unit. Landlords should weigh these factors carefully and consider the local market dynamics, including the number of available units and the proportion of renters who rely on government assistance.
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.