Location: Franklin County, MA | Metro: Franklin County, MA
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 | $1,360 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,950 | $311,283 | 0.63% | D |
| 3BR | $2,320 | $379,707 | 0.61% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP 01378 (Warwick, MA) might raise several concerns regarding the feasibility of investing in this area. Let's address these objections head-on using available data.
Will FMR $1260 (zip FY 2024) cover the mortgage on a $335,976 home?
To determine if the Fair Market Rent (FMR) of $1260 can cover the mortgage on a home priced at $335,976, we must consider the current mortgage rates. According to recent data, the average rate for a 30-year fixed mortgage is around 5.875%. Using this rate, the monthly mortgage payment for a $335,976 home would be approximately $1,900, which is significantly higher than the FMR. Therefore, relying solely on the FMR would not be sufficient to cover the mortgage payments.
Is there enough renter demand at 11.0%?
The renter demand in ZIP 01378 is measured at 11.0%, which indicates a moderate level of demand. While this percentage does suggest that there is a base level of renters interested in the area, it may not be high enough to guarantee consistent occupancy. However, given the relatively stable housing market trends in Warwick, maintaining a steady stream of renters should be achievable. It is important to note that the data does not provide a comprehensive picture of the competition or vacancy rates, so additional research may be necessary.
Will vouchers keep pace with $1,367 market rents?
The market rent in ZIP 01378 is reported to be around $1,367 per month. The question of whether vouchers will keep pace with this figure depends on the specific voucher program and its funding. The FMR of $1260 is lower than the market rent, suggesting that vouchers may not fully cover the cost. However, landlords can supplement the difference with other sources of income or by adjusting the property management strategy. It is advisable to consult with local housing authorities to understand the specifics of voucher programs and their alignment with current market rents.
In conclusion, while ZIP 01378 presents some challenges, particularly with regard to covering mortgage payments and ensuring adequate renter demand, it remains a viable investment opportunity with careful planning and consideration of the data.
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.