Location: Worcester, MA | Metro: Worcester, 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 | $1,430 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,860 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,440 | $318,476 | 0.45% | F |
| 2BR | $1,860 | $388,134 | 0.48% | F |
| 3BR | $2,300 | $480,787 | 0.48% | F |
| 4BR | $2,550 | $561,342 | 0.45% | F |
| 5BR | $2,958 | $630,698 | 0.47% | F |
U.S. Census Bureau data (2024)
The potential risks for landlords investing in ZIP 01501 in Auburn, MA under the Section 8 program are significant. Firstly, tenant turnover is a concern due to the disparity between the market rent of $1,467 and the Fair Market Rent (FMR) of $1,480 for fiscal year 2024. This slight difference might not cover all expenses, leading to financial strain during periods of high tenant turnover. Secondly, vacancy exposure is a critical issue because the days on market (DOM) data is currently unavailable, which makes it difficult to predict how quickly a property can be rented out. Lastly, there is a notable risk of deferred maintenance, considering the typical home value of $464,966 and the median income of $116,762. The median income suggests that many residents may struggle to afford the necessary upkeep of their homes, potentially leaving landlords with the burden of maintaining properties to meet program standards.
Despite these risks, the high renter share of 20.5% in the area indicates a robust demand for rental housing, which typically translates into higher demand for Section 8 vouchers. This demand can mitigate some of the risks associated with tenant turnover and vacancy exposure, as landlords are likely to have a steady pool of applicants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.