Section 8 Fair Market Rent (FMR) for ZIP 01440 - 2027

Location: Fitchburg-Leominster, MA | Metro: Fitchburg-Leominster, MA HUD Metro FMR Area

Investment Score for ZIP 01440

Monthly Rent (2BR)

$1,690

Median Price (2BR)

$300,233

1% Rule

0.56%

Annual Yield

6.75%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,180
1 Bedroom	$1,400
2 Bedrooms	$1,690
3 Bedrooms	$2,150
4 Bedrooms	$2,520
5 Bedrooms	$2,923
6 Bedrooms	$3,274
7 Bedrooms	$3,536
8 Bedrooms	$3,713

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,400	$176,843	0.79%	D
2BR	$1,690	$300,233	0.56%	F
3BR	$2,150	$392,200	0.55%	F
4BR	$2,520	$426,723	0.59%	F
5BR	$2,923	$453,937	0.64%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

21,276

Median Household Income

$67,440

Housing Units

9,555

Renter Percentage

40.9%

Occupancy Rate

94.3%

Renter Occupied

3,686

The Section 8 thesis for ZIP code 01440, which encompasses Gardner, MA, centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1400, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $1590. This creates a gap of $190 per month, or approximately 13.6%, where landlords can either benefit or face challenges depending on their approach.

Given that the FMR is less than the market rent, it means that landlords who accept Section 8 vouchers will be renting their properties below the open-market rates. The cost of housing voucher tenants at these lower rates can impact the overall yield on investment properties. However, there are several factors that make this a compelling strategy:

Rental Stability: Section 8 tenants typically have stable rental payments due to government subsidies, reducing the risk of vacancies and non-payment. In Gardner, MA, where 40.9% of residents are renters, maintaining a steady stream of income is crucial for landlords.
Government Subsidies: The program ensures that a portion of the rent is paid directly by the government, which can be beneficial for landlords looking to manage cash flow more predictably.
Economic Context: With a median income of $67,440 and a median home value of $368,962, the area has a significant number of residents who may rely on assistance programs like Section 8 to afford housing. This demographic supports the demand for subsidized rentals.

The gap between the FMR and market rent highlights the financial trade-offs involved in accepting Section 8 vouchers. While landlords may see a slightly reduced monthly rent compared to the open market, the benefits of guaranteed payment and a reliable tenant pool can outweigh the initial disparity. Moreover, the local economic conditions in Gardner, MA, underscore the importance of such programs in providing affordable housing options to a substantial portion of the population.

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.