Location: Worcester, MA | Metro: Worcester, MA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,190 |
| 1 Bedroom | $2,210 |
| 2 Bedrooms | $2,840 |
| 3 Bedrooms | $3,560 |
| 4 Bedrooms | $4,050 |
| 5 Bedrooms | $4,698 |
| 6 Bedrooms | $5,262 |
| 7 Bedrooms | $5,683 |
| 8 Bedrooms | $5,967 |
U.S. Census Bureau data (2024)
The ZIP code 01532, located in Northborough, MA, within the Worcester, MA HUD Metro FMR Area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for FY 2024 stands at $2490, which is significantly higher than the current market rent of $1919. This $571 spread between FMR and market rent ensures that properties in this ZIP can command rents above what tenants might otherwise pay on the open market, providing a solid financial cushion.
Additionally, the median home value in ZIP 01532 is $693,030, indicating a stable and affluent residential area. The high median income of $153,199 further supports the notion that this ZIP is financially secure, reducing the risk of tenant default and ensuring steady cash flow.
While the 0.1% price-cut share and N/A-day Days on Market (DOM) suggest minimal competition and quick sales, these factors are less critical for a Section 8 investment strategy focused on long-term rental income. The primary goal here is to maintain consistent cash flow, and the strong rent-to-income ratio in ZIP 01532 makes it well-suited for this purpose.
The 16.9% renter share also plays a role, but primarily as a diversifier. It means that while there are fewer renters compared to homeowners, the high FMR and low market rent gap still make this ZIP attractive for Section 8 investments. Landlords can expect a reliable stream of rental income without the volatility often associated with areas where the renter population is much larger.
In summary, ZIP 01532 should be considered a cash-flow anchor due to its substantial spread between FMR and market rent, coupled with its high median income and stable home values. This makes it a safe and profitable addition to any Section 8 portfolio strategy.
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.