Section 8 Fair Market Rent (FMR) for ZIP 01527 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 01527

• 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

To determine if a landlord should buy in ZIP 01527 (Millbury, MA) for Section 8, follow these steps:

• If the Fair Market Rent (FMR) of $1,680 can cover the debt service on a $501,054 property:

  Yes, proceed to the next step. This indicates that the rental income is sufficient to meet the financial obligations associated with the property.

• If the FMR of $1,680 cannot cover the debt service on a $501,054 property:

  No, do not invest in this area for Section 8 purposes. The rental income would be insufficient to support the property's financial requirements.

The next step involves comparing the Zillow Observed Rent Index (ZORI), which is $2,589, against the FMR.

• If market rent ($2,589) is above the FMR ($1,680):

  It depends on the specific financial situation and goals of the landlord. While the market rent exceeds the FMR, indicating a potentially profitable non-Section 8 investment, it also suggests that Section 8 tenants might find it challenging to afford the market rate, reducing demand.

• If market rent ($2,589) is at or near the FMR ($1,680):

  Yes, this could be a good investment for Section 8. The market rent aligns closely with the FMR, suggesting a balanced demand between market-rate and Section 8 tenants.

• If market rent ($2,589) is significantly below the FMR ($1,680):

  No, this would likely result in lower overall demand for the property. Landlords would face challenges in renting out properties at the FMR when the market rate is lower.

The final consideration is the percentage of renters (24.6%) and the number of days on the market (DOM) before being rented. Since the DOM is listed as N/A, we must focus on the renter percentage.

• If there is sufficient demand based on the renter percentage (24.6%) and other local market factors:

  Yes, the area has enough demand to support a Section 8 investment. The renter population is significant enough to ensure a steady stream of potential tenants.

• If there is insufficient demand based on the renter percentage (24.6%) and other local market factors:

  No, the demand is too low to justify an investment focused on Section 8 tenants. A higher renter percentage would typically indicate better prospects for renting to Section 8 tenants.

Note: The lack of data on DOM makes it difficult to fully assess the market conditions. Additional research into the local rental market trends is recommended.

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.