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 | $1,600 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,590 |
| 4 Bedrooms | $2,950 |
| 5 Bedrooms | $3,422 |
| 6 Bedrooms | $3,833 |
| 7 Bedrooms | $4,140 |
| 8 Bedrooms | $4,347 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,070 | $378,995 | 0.55% | F |
| 3BR | $2,590 | $528,544 | 0.49% | F |
| 4BR | $2,950 | $673,928 | 0.44% | F |
U.S. Census Bureau data (2024)
The rent math for ZIP 01522, located in Holden, MA, within the Worcester, MA HUD Metro FMR Area, does not align favorably. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1790, which is significantly higher than the actual market rent of $1,164 based on Census ACS data. This discrepancy suggests that landlords may struggle to find tenants willing to pay the FMR, especially when considering the lower market rates.
Acquisition in ZIP 01522 is relatively affordable given the median home value of $528,757. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts indicates potential challenges in accurately assessing the local housing market's liquidity and competitiveness. Landlords and small-portfolio investors should proceed with caution, as these missing metrics could point to either a stable or a volatile market condition.
Tenant demand in ZIP 01522 is moderate. With a total population of 3,152, the area has a 19.7% renter share. This means approximately 622 residents are actively seeking rental properties. While this number is not negligible, it may limit the pool of potential tenants, especially if the FMR is not reflective of what renters are willing to pay.
Given the analysis, ZIP 01522 presents a mixed outlook for landlords and small-portfolio investors. The high FMR versus low market rent suggests a challenging environment for setting competitive rental prices. Acquisition costs are reasonable, but the incomplete data on market dynamics introduces uncertainty. Tenant demand is present, though limited by the size of the population and the renter share. Overall, while there are opportunities, careful consideration of the local rental market conditions and tenant preferences is essential before making any investment decisions.
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.