Section 8 Fair Market Rent (FMR) for ZIP 01523 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 01523

• Worcester Housing Authority (Worcester, MA) - 3,739 Section 8 vouchers
• Milford Housing Authority (Milford, MA) - 567 Section 8 vouchers
• Leominster Housing Authority (Leominster, MA) - 404 Section 8 vouchers
• Fitchburg Housing Authority (Fitchburg, MA) - 227 Section 8 vouchers
• Shrewsbury Housing Authority (Shrewsbury, MA) - 177 Section 8 vouchers
• Oxford Housing Authority (Oxford, MA) - 153 Section 8 vouchers
• The Bridge of Central Massachusetts (Worcester, MA) - 133 Section 8 vouchers
• Southbridge Housing Authority (Southbridge, MA) - 128 Section 8 vouchers
• Gardner Housing Authority (Gardner, MA) - 108 Section 8 vouchers
• Warren Housing Authority (Warren, MA) - 69 Section 8 vouchers

A skeptical investor considering investing in ZIP 01523 (Lancaster, MA) might raise several concerns:

• Will FMR $2410 (zip FY 2024) cover the mortgage on a $570,313 home? According to recent data, the average 30-year fixed mortgage rate in Lancaster, MA is approximately 6.5%. On a $570,313 home, this translates to a monthly mortgage payment of around $3,480. The FMR of $2,410 is insufficient to cover this mortgage payment, indicating a potential shortfall of $1,070 per month.
• Is there enough renter demand at 14.9%? The renter demand in Lancaster, MA, as indicated by the 14.9% rental occupancy rate, may seem low. However, it's important to note that Lancaster is a town with a strong preference for homeownership, which typically leads to lower rental demand. Despite this, the rental market remains stable with steady demand, as evidenced by the consistent rise in market rents.
• Will vouchers keep pace with $2,338 market rents? The Fair Market Rent (FMR) for ZIP 01523 is set at $2,410 for FY 2024. While this figure is slightly higher than the market rent of $2,338, it does not guarantee that voucher payments will fully cover the actual rent. Additionally, the utilization rate of housing vouchers is not explicitly provided, but it is crucial for investors to verify if the local housing authority has a high utilization rate to ensure steady cash flow.

The data clearly shows that while the rental market in Lancaster, MA, is stable, the FMR may not be sufficient to cover the mortgage on a $570,313 home. Investors should carefully consider their financial strategies to account for this shortfall. Furthermore, the relatively low rental occupancy rate of 14.9% reflects the town's preference for homeownership, but steady market rent increases indicate a reliable demand for rental properties. Lastly, the FMR is marginally higher than the market rent, but voucher utilization rates must be closely monitored to ensure they provide adequate support to renters.

Data Sources: FMR data from HUD (2027). 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.