Location: Eastern Worcester County, 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 | $2,230 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,650 | $390,032 | 0.68% | D |
| 3BR | $3,180 | $487,591 | 0.65% | D |
| 4BR | $3,510 | $602,155 | 0.58% | F |
| 5BR | $4,072 | $593,051 | 0.69% | D |
U.S. Census Bureau data (2024)
The ZIP code 01504, located in Blackstone, MA within the Eastern Worcester County, MA HUD Metro FMR Area, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This area should be considered primarily as a cash-flow anchor.
The justification for this classification lies in the significant spread between the Fair Market Rent (FMR) set by HUD and the actual market rents. For fiscal year 2024, the FMR for ZIP 01504 is $2380, whereas the current market rent stands at $1,189. This means that landlords participating in the Section 8 program can expect to receive substantially higher rental income compared to what they might get from the private market. The difference between these figures ensures a stable and predictable cash flow, which is essential for any investment portfolio.
Furthermore, the high FMR relative to the median home value of $477,688 indicates that the cost of living in this area is relatively low compared to the property values, making it an attractive location for tenants seeking affordable housing options. The median income of $94,191 suggests that residents have a solid financial foundation, reducing the risk of default on rent payments.
While the renter share of 26.8% is not negligible, it does not suggest a high demand for rental properties that would typically characterize an appreciation play. Therefore, the focus should remain on leveraging the ZIP's characteristics as a cash-flow anchor rather than expecting rapid increases in property value.
In summary, ZIP 01504 offers a strong case for being included as a cash-flow anchor in a Section 8 portfolio strategy due to the favorable FMR rates and the financial stability of its residents.
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.