Location: Fitchburg-Leominster, 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 | $1,630 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,360 |
| 3 Bedrooms | $3,040 |
| 4 Bedrooms | $3,560 |
| 5 Bedrooms | $4,130 |
| 6 Bedrooms | $4,626 |
| 7 Bedrooms | $4,996 |
| 8 Bedrooms | $5,246 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,900 | $308,802 | 0.62% | D |
| 2BR | $2,360 | $376,571 | 0.63% | D |
| 3BR | $3,040 | $480,628 | 0.63% | D |
| 4BR | $3,560 | $559,944 | 0.64% | D |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 housing in ZIP code 01430, located in Ashburnham, MA, are significant. Firstly, tenant turnover can be a substantial issue. The market rent for the area is approximately $1,580, whereas the Fair Market Rent (FMR) for FY 2024 stands at $2,370. This discrepancy suggests that tenants may seek higher-rent properties outside of the Section 8 program, leading to frequent turnover and associated costs.
Vacancy exposure is another concern. With the days on market (DOM) being listed as N/A, it's challenging to predict how long a property might remain vacant between tenancies. This unpredictability can lead to extended periods without rental income, which can significantly impact cash flow.
Deferred maintenance is also a risk factor. Given the typical home value of $450,650 and the median income of $118,683, landlords must be prepared to cover any maintenance or repair costs that exceed the voucher payments. Tenants with limited financial resources may not be able to contribute to such expenses, leaving the landlord responsible for maintaining the property's condition.
However, these risks must be weighed against the high concentration of renters in the area. The 4.5% renter share indicates a relatively dense population of potential voucher holders. High renter density often translates into greater demand for affordable housing options, which can help mitigate vacancy concerns and ensure a steady stream of tenants.
In conclusion, despite the challenges posed by tenant turnover, unpredictable vacancy rates, and the need for ongoing maintenance, the high renter density in Ashburnham, MA, suggests a moderate risk for a first-time Section 8 landlord. While there are definite hurdles, the local market conditions offer some stability and demand that can offset these issues.
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.