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 | $1,970 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,550 |
| 3 Bedrooms | $3,190 |
| 4 Bedrooms | $3,640 |
| 5 Bedrooms | $4,222 |
| 6 Bedrooms | $4,729 |
| 7 Bedrooms | $5,107 |
| 8 Bedrooms | $5,362 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,550 | $438,373 | 0.58% | F |
| 3BR | $3,190 | $566,439 | 0.56% | F |
| 4BR | $3,640 | $923,223 | 0.39% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 01505, Boylston, MA, reveals a stark contrast between the federally mandated Fair Market Rent (FMR) and the actual market rental rates. For a two-bedroom property, the annualized FMR for FY 2024 is $1700 per month, equating to an annual income of $20,400. In comparison, the Census ACS indicates a market rent of $2,032 per month, translating to an annual income of $24,384.
Against the backdrop of the median home value in Boylston, MA, which stands at $623,478, these rental incomes imply gross yields of 3.27% for the FMR scenario and 3.91% for the market rent scenario. To derive these figures, divide the annual rental income by the median home value:
Given the low renter density of 20.8%, it becomes evident that relying solely on the FMR would result in a significantly lower gross yield. This scenario suggests that properties in Boylston, MA, would struggle to generate sufficient cash flow under the Section 8 program, especially considering the high median home value. The FMR gross yield of 3.27% is notably below typical investment benchmarks.
The market rent scenario, however, presents a more optimistic outlook with a gross yield of 3.91%. This figure is still relatively modest compared to other investment opportunities, but it aligns better with the local rental market conditions. Given the lack of specific data on days on market (DOM), it's difficult to assess how quickly a property could be leased at market rates. However, the higher gross yield associated with market rents makes it a more realistic scenario for landlords and small-portfolio investors looking to participate in the Section 8 program while maintaining a reasonable return on investment.
In conclusion, while the FMR provides a clear benchmark for affordability, it does not offer a compelling gross yield for investors. The market rent scenario, despite being modest, offers a more practical approach to generating income from real estate in Boylston, MA, under the Section 8 program.
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.