Section 8 Fair Market Rent (FMR) for ZIP 01453 - 2027

Investment Score for ZIP 01453

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	$1,430
1 Bedroom	$1,670
2 Bedrooms	$2,020
3 Bedrooms	$2,570
4 Bedrooms	$3,010
5 Bedrooms	$3,492
6 Bedrooms	$3,911
7 Bedrooms	$4,224
8 Bedrooms	$4,435

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	$1,670	$223,212	0.75%	D
2BR	$2,020	$347,801	0.58%	F
3BR	$2,570	$493,415	0.52%	F
4BR	$3,010	$578,336	0.52%	F
5BR	$3,492	$646,496	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 01453 (Leominster, MA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Leominster, MA (ZIP 01453), in 2026 is set at $1850 for a two-bedroom unit. This represents 26.3% of the median household income of $84,296, which suggests that it is a reasonable rent amount for those receiving Section 8 vouchers. However, the actual rental market dynamics reveal a different picture. The Zillow median price for a two-bedroom home in Leominster is $343,778, indicating a significant disparity between the median home value and the FMR. The price-to-FMR ratio of 15.5x highlights that the actual market rents are much higher than the FMR, creating a challenging environment for voucher holders. For instance, a three-bedroom unit has an FMR of $2380, but the actual market rent could be significantly higher, potentially limiting the number of units available to voucher holders. #### Affordability & Renter Profile Leominster has a population of 43,851, with 37.8% of residents being renters. This indicates a substantial demand for rental properties, suggesting that the market is relatively tight. The occupancy rate of 96.0% further supports this conclusion, as it shows that most available units are already occupied. Given the median household income of $84,296, the majority of renters likely fall into the middle-income bracket. However, the high price-to-FMR ratio implies that many renters, especially those relying on Section 8 vouchers, might struggle to find affordable housing. The FMR for a four-bedroom unit is $2790, which is still only 33.1% of the median income, making it a stretch for low-income families to afford even with a voucher. #### Investor Angle From an investor perspective, the ZIP code 01453 presents both opportunities and challenges. The FMRs are designed to ensure that rental units are affordable for low-income households. However, the actual market rents are much higher, which means that landlords who rent at or near FMR levels may face lower occupancy rates. To illustrate, a landlord renting a two-bedroom unit at the FMR of $1850 would be operating at a significant discount compared to the median home value of $343,778. This could result in a negative cash flow if the property expenses exceed the rental income. Despite the high price-to-FMR ratio, there is still a significant portion of the population that relies on rental housing. With 37.8% of the population being renters, and a high occupancy rate of 96.0%, the demand for rental units remains strong. However, the investment grade for Section 8-focused investors would be moderate due to the tight market conditions and the potential difficulty in finding units that are both affordable and suitable for voucher holders. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Investors should focus on acquiring properties that can be rented at or below the FMR levels. For example, a two-bedroom unit at $1850 would be ideal for Section 8 voucher holders. This strategy could help maintain a steady occupancy rate and ensure a stable cash flow. 2. **Consider Multi-Family Properties**: Given the high occupancy rate and the significant percentage of renters, multi-family properties could be a good investment. These properties often have economies of scale that can offset some of the lower rental income per unit. 3. **Evaluate Property Expenses Carefully**: Since the FMRs are set well below the actual market rents, investors need to carefully evaluate their property expenses. If the expenses are too high relative to the FMR, the investment will likely result in negative cash flow. For instance, a three-bedroom unit at $2380 might not cover all expenses unless the property management is highly efficient. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 01453 is to **Hold**. While there is a strong demand for rental properties, the high price-to-FMR ratio makes it difficult to find units that are both affordable and profitable. Investors should carefully consider their property expenses and target lower-rent units to ensure a positive cash flow. The tight market conditions and high occupancy rates suggest that there is a solid base of renters, but the challenge lies in aligning rental prices with the FMR to attract voucher holders while maintaining profitability.

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.