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 | $1,850 |
| 1 Bedroom | $2,190 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,370 |
| 4 Bedrooms | $3,940 |
| 5 Bedrooms | $4,570 |
| 6 Bedrooms | $5,118 |
| 7 Bedrooms | $5,527 |
| 8 Bedrooms | $5,803 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,190 | $340,427 | 0.64% | D |
| 2BR | $2,650 | $423,159 | 0.63% | D |
| 3BR | $3,370 | $542,292 | 0.62% | D |
| 4BR | $3,940 | $659,710 | 0.6% | F |
| 5BR | $4,570 | $695,118 | 0.66% | D |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 01473, specifically Westminster, MA, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, set at $1940 per month for fiscal year 2024, exceeds the Census ACS reported market rent of $1843. This creates a positive differential of $97 per month, or approximately 5.27%, which benefits landlords who accept voucher tenants.
In Westminster, where only 12.4% of residents are renters, the opportunity to participate in the Section 8 program can be highly advantageous. With a median home value of $538,393 and a median household income of $106,331, the rental market is relatively small compared to homeownership. However, the Section 8 program compensates landlords at a rate higher than what the open market currently offers. This means that landlords can achieve better yields on their investment properties by accepting voucher holders, as they are guaranteed a higher rent payment than the typical market rate.
The higher FMR compared to the market rent also suggests that voucher tenants can provide a more stable source of income. Given the economic context of Westminster, where incomes are relatively high, it might be challenging to find tenants willing to pay the higher FMR without the assistance of a voucher. Therefore, the Section 8 program not only ensures a landlord receives a rent above the local average but also helps fill vacancies in a competitive market.
However, landlords must also consider the administrative aspects of participating in the Section 8 program. While the financial gap makes it a yield play, there could be additional costs associated with maintaining properties up to HUD standards and dealing with the bureaucratic processes. These factors should be weighed against the financial benefits when deciding whether to accept Section 8 vouchers.
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.