Location: Lowell, MA | Metro: Boston-Cambridge-Quincy, MA-NH 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 | $2,130 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,650 | $486,496 | 0.54% | F |
| 3BR | $3,180 | $694,736 | 0.46% | F |
| 4BR | $3,510 | $937,448 | 0.37% | F |
| 5BR | $4,072 | $1,133,906 | 0.36% | F |
U.S. Census Bureau data (2024)
A landlord considering whether to invest in ZIP 01450 (Groton, MA) for Section 8 should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $2380 cover the debt service on a property valued at $775,932?
If the debt service is less than $2380 per month, then the answer is Yes. The FMR provides sufficient income to meet the monthly financial obligations.
If the debt service exceeds $2380 per month, then the answer is No. The FMR would not be enough to cover the monthly costs associated with the property.
2) How does the market rent of $1,473 compare to the FMR?
If the market rent is below the FMR, then the answer is It depends. Landlords could potentially charge the higher FMR rate, but they must ensure that the higher rent does not deter potential tenants who qualify for Section 8 assistance.
If the market rent is equal to or above the FMR, then the answer is Yes. There is no risk of pricing out tenants since the market rent aligns with or exceeds the FMR.
3) Is there enough demand with 11.0% renters and an unknown number of days on the market (DOM)?
If the 11.0% rental rate indicates a stable and consistent demand for rental properties in Groton, MA, then the answer is Yes. However, without knowing the DOM, landlords must rely on other indicators such as vacancy rates or local economic trends to gauge demand accurately.
If the rental rate is low due to high DOM or other factors, then the answer is No. There may not be enough demand to justify the investment, especially if the property remains vacant for extended periods.
In summary, for ZIP 01450, a landlord's decision to invest in Section 8 properties hinges on the ability of the FMR to cover debt service, the alignment of market rent with the FMR, and the overall demand for rentals in the area. Given the data, if the debt service is manageable under the FMR cap and market rents do not exceed this limit significantly, the investment can be viable. However, the unknown DOM complicates the assessment of demand, making it essential to investigate further before committing to a purchase.
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.