Location: Fitchburg-Leominster, 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 | $2,350 |
| 2 Bedrooms | $2,840 |
| 3 Bedrooms | $3,620 |
| 4 Bedrooms | $4,230 |
| 5 Bedrooms | $4,907 |
| 6 Bedrooms | $5,496 |
| 7 Bedrooms | $5,936 |
| 8 Bedrooms | $6,233 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,350 | $411,989 | 0.57% | F |
| 2BR | $2,840 | $424,044 | 0.67% | D |
| 3BR | $3,620 | $547,059 | 0.66% | D |
| 4BR | $4,230 | $716,750 | 0.59% | F |
| 5BR | $4,907 | $763,258 | 0.64% | D |
U.S. Census Bureau data (2024)
Lunenburg, MA, located in the 01462 ZIP code and part of the Fitchburg-Leominster, MA HUD Metro FMR Area, presents itself as a cash-flow anchor within a Section 8 portfolio strategy. The primary reason for this classification is the significant spread between the Fair Market Rent (FMR) and the actual market rents.
The FMR for ZIP 01462 in fiscal year 2024 is set at $2380, whereas the current market rent stands at $1974. This means that landlords participating in the Section 8 program can expect to receive a higher rental income than what the market currently dictates. Given that the median home value in the area is $541,349, the rental income from Section 8 is particularly attractive as it ensures a steady, government-backed revenue stream that exceeds the typical market rates. This makes the ZIP an ideal location for anchoring cash flow within a broader investment portfolio.
While Lunenburg offers limited potential for appreciation plays due to its low price-cut share of 0.2%, the fact that it has a negligible number of days on market (DOM) indicates a stable rental market where properties are quickly occupied, further supporting the cash-flow anchor designation. Additionally, the ZIP's renter share of 19.3% and median income of $112,992 suggest a moderate demand for rentals, but not so high that it would drive up competition and thus market rents beyond the FMR. Therefore, Lunenburg serves as a reliable component of a Section 8 strategy, providing consistent returns without the volatility associated with rapid market changes.
In summary, Lunenburg, MA, should be considered a cash-flow anchor in a Section 8 portfolio strategy. Its financial metrics, including the favorable spread between FMR and market rents, make it a dependable choice for generating stable rental income. Landlords and small-portfolio investors can leverage this opportunity to ensure a solid foundation for their investment strategies, especially when seeking predictable cash flows.
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.