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 | $398,820 | 0.47% | F |
| 3BR | $2,300 | $467,498 | 0.49% | F |
| 4BR | $2,550 | $548,757 | 0.46% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 01524, Leicester, Massachusetts, involve understanding the interplay between the SAFMR (Small Area Fair Market Rent) and the local market rent. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1480. This figure represents the maximum amount that a Section 8 voucher will cover for rent in this specific ZIP code.
Local market rents, as reported by the Census ACS, run slightly higher at $1,661. This means that landlords in ZIP 01524 could potentially face a slight shortfall if they rely solely on the Section 8 reimbursement rates. However, the actual payment received by landlords includes more than just the SAFMR. It also factors in the tenant's contribution towards rent and any applicable utility allowances.
The tenant is required to pay 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,500 for a Section 8 household, the tenant would contribute $450 towards the monthly rent. Additionally, utility allowances can vary but are typically around $300-$400 per month, depending on the number of bedrooms and other factors. Therefore, the total reimbursement a landlord might receive is calculated as follows:
This brings the total reimbursement close to $2280 per month. However, it's important to note that the actual amount can vary based on the specific circumstances of the tenant, such as their exact income level and utility usage.
Given that the local market rent is $1,661, landlords participating in the Section 8 program for a two-bedroom unit would see a surplus of approximately $619 per month when all components of the voucher payment are considered. This surplus provides a buffer against potential shortfalls in the SAFMR compared to the local market rent and ensures that landlords are adequately compensated for renting to Section 8 participants.
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.