Location: Western Worcester County, 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 | $1,410 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $2,030 |
| 3 Bedrooms | $2,580 |
| 4 Bedrooms | $3,020 |
| 5 Bedrooms | $3,503 |
| 6 Bedrooms | $3,923 |
| 7 Bedrooms | $4,237 |
| 8 Bedrooms | $4,449 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,030 | $332,777 | 0.61% | D |
| 3BR | $2,580 | $446,283 | 0.58% | F |
| 4BR | $3,020 | $486,372 | 0.62% | D |
| 5BR | $3,503 | $505,556 | 0.69% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 01468, which covers Templeton, MA, stands at $113,427. This places many households in a position where they can comfortably afford the market rate rent of $984 per month, according to the latest Census ACS data. However, when comparing this figure to the Fair Market Rent (FMR) standard set by the federal government at $1790 for zip code FY 2024, it becomes evident that the local rental market is significantly below the federally recognized fair market rate.
In Templeton, only 5.9% of the population are renters, with a total population of 4,183. This means there are approximately 245 renters in the area. Given the relatively low percentage of renters and the town's overall population, the competition among landlords is likely to be fierce for the limited number of rental units available. The affordability gap, where market rents are much lower than the FMR, suggests that landlords might find it challenging to increase their rents beyond the current levels without potentially pricing out a significant portion of the local tenant pool.
For landlords considering whether to accept Section 8 vouchers or focus on cash-paying tenants, the data points to a clear strategy. Accepting vouchers could provide a steady stream of tenants willing to pay up to the FMR of $1790, which is higher than the current market rate. This would allow landlords to increase their rental income without necessarily raising the rent for non-voucher tenants. On the other hand, focusing solely on cash-paying tenants means relying on the local market rate of $984, which may limit the ability to raise rents in the future due to the tight competition and the income levels of the residents.
Takeaway: Landlords in Templeton, MA, should consider accepting Section 8 vouchers as part of their rental strategy. This approach can help secure tenants who can pay closer to the FMR, thereby increasing potential rental income without the risk of overpricing the local market. It also offers a buffer against the competitive landscape, ensuring a more stable tenant base.
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.