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 | $1,580 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $2,270 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $2,980 |
| 5 Bedrooms | $3,457 |
| 6 Bedrooms | $3,872 |
| 7 Bedrooms | $4,182 |
| 8 Bedrooms | $4,391 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,270 | $302,639 | 0.75% | D |
| 3BR | $2,700 | $375,466 | 0.72% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 01379 (Wendell, MA) provides a clear picture of potential investment yields. Using the Fair Market Rent (FMR) for a 2-bedroom unit at $1450 per month (annualized to $17,400) and the market rent at $1,500 per month (annualized to $18,000), we can calculate the gross yield against the median home value of $310,380.
For the Section 8 scenario, the annualized rent of $17,400 translates into a gross yield of approximately 5.6%. This is calculated by dividing the annual rent by the median home value ($17,400 / $310,380 = 0.056, or 5.6%). In contrast, the market rent of $18,000 provides a slightly higher gross yield of about 5.8% ($18,000 / $310,380 = 0.058, or 5.8%).
Given the 12.3% renter density in Wendell, it is important to consider the stability and demand for rental properties. While the exact number of days on market (DOM) is not available, the relatively low renter density suggests that the rental market might be less competitive compared to areas with higher densities. This implies that the Section 8 scenario could offer a more stable income stream, albeit with a slightly lower gross yield.
Investors should weigh the benefits of guaranteed rent through Section 8 versus the potential for higher market rents. The Section 8 option offers a steady cash flow with less risk, while the market rent scenario provides a marginally better gross yield but comes with the uncertainty of finding and retaining tenants in a less dense rental market. The choice between these options depends on the investor's risk tolerance and long-term goals.
In conclusion, the gross yield for a Section 8 property in ZIP 01379 is around 5.6%, while a market rent property would have a gross yield of about 5.8%. Considering the 12.3% renter density, the Section 8 scenario may present a more reliable investment opportunity.
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.