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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,860 | $385,096 | 0.48% | F |
| 3BR | $2,300 | $514,922 | 0.45% | F |
| 4BR | $2,550 | $655,277 | 0.39% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 01518 (Sturbridge, MA) for fiscal year 2024 is set at $1,660. This figure represents the maximum amount that a landlord can charge a tenant participating in the Section 8 housing choice voucher program. In comparison, the Census ACS data indicates that the market rent for the same area is approximately $767. Given these numbers, it is clear that voucher tenants would cashflow positively at the FMR rate, as the difference between the FMR and the market rent is substantial.
To further analyze the investment potential, we can derive the rent-to-price ratio using the median home value of $521,124. The calculated rent-to-price ratio is approximately 0.32%, which suggests that the rental income generated from a property valued at the median would be relatively low compared to its purchase price. However, this ratio does not take into account the guaranteed income stream provided by the Section 8 program, which can offer significant stability to landlords and small-portfolio investors.
In terms of the rental versus buying dynamics, the median Days on Market (DOM) is not available, nor is the percentage of price cuts shared. Nonetheless, the strong positive cashflow from voucher tenants makes this less critical for Section 8 investors. The stability offered by the Section 8 program is the strongest investor angle in this market, given the guaranteed income and the minimal risk associated with rent collection.
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.