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 | $1,550 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,780 |
| 4 Bedrooms | $3,360 |
| 5 Bedrooms | $3,898 |
| 6 Bedrooms | $4,366 |
| 7 Bedrooms | $4,715 |
| 8 Bedrooms | $4,951 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,780 | $490,745 | 0.57% | F |
| 4BR | $3,360 | $543,035 | 0.62% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 01366, located in Petersham, Massachusetts, reveals a critical gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 01366 in fiscal year 2024 is $1,680, while the Census ACS data indicates a market rent of $1,679. This gap is minimal, standing at just $1, or approximately 0.06%, which suggests that the rents charged under the Section 8 program closely align with the local market conditions.
In the context of Massachusetts, where 5.8% of the population are renters, the median home value of $473,577 and median income of $110,750 provide important benchmarks for understanding the financial landscape. The slight advantage of the FMR over the market rent means that landlords can expect a stable and predictable income stream from voucher tenants, without the volatility often associated with the open market.
However, it's crucial to note that this near-equivalence between FMR and market rent does not necessarily translate into higher yields. Instead, it underscores the importance of managing costs effectively to ensure profitability. Landlords must be mindful of maintenance, vacancy rates, and other operational expenses to maintain a positive cash flow.
The median home value in ZIP 01366 is $392,400, indicating a relatively stable housing market. Given the close alignment between FMR and market rent, landlords should focus on property management strategies that enhance the overall quality and appeal of their rental properties to attract and retain tenants.
Investors should also consider the broader economic context, including the employment rate of 53.12% and the educational attainment level, with 42.61% holding a bachelor's degree or higher. These factors influence the demand for rental properties and the likelihood of timely rent payments.
To summarize, the near-equivalence between FMR and market rent in ZIP 01366 makes it a viable option for landlords and small-portfolio investors, provided they manage costs effectively and maintain high-quality properties.
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.