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 | $1,280 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,740 |
| 5 Bedrooms | $3,178 |
| 6 Bedrooms | $3,559 |
| 7 Bedrooms | $3,844 |
| 8 Bedrooms | $4,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,340 | $413,418 | 0.57% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 01436 for Section 8 purposes must evaluate several factors to determine if it's a viable investment. The first step involves understanding whether the Fair Market Rent (FMR) can cover the debt service on a property valued at $396,385.
Does FMR of $1570 cover debt service? Yes, it does. Assuming a typical mortgage rate of around 4.5%, the annual debt service on a $396,385 property would be approximately $17,800. This translates to roughly $1,483 per month. With an FMR of $1570, the rental income would exceed the monthly debt service by about $87, making it financially feasible to acquire such a property.
Is market rent above, at, or below FMR? Market rent stands at $1,123 according to the latest Census American Community Survey (ACS) data. This figure is below the FMR of $1570, indicating that the property could be rented out at the higher FMR rate. However, it also suggests that there might be some resistance from non-Section 8 tenants who are accustomed to paying less.
Are 23.5% renters and N/A-day days on the market indicative of sufficient demand? It depends. The percentage of renters in the area at 23.5% is relatively low compared to other ZIP codes, but it doesn't necessarily mean there isn't demand. The absence of data regarding days on the market (DOM) makes it challenging to assess how quickly properties are typically leased. If the market is slow-moving and has high vacancy rates, even a lower percentage of renters could indicate sufficient demand. Conversely, if the market is tight and competition for tenants is fierce, the low percentage of renters might suggest a lack of demand.
In conclusion, ZIP 01436 presents a mixed scenario. While the FMR comfortably covers debt service and is higher than market rent, the demand signal is unclear due to insufficient data on the market's speed and competitiveness. Landlords should further investigate local vacancy rates and tenant preferences before making a final decision.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.