Location: Western Worcester County, 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 | $335,396 | 0.55% | F |
| 3BR | $2,300 | $404,649 | 0.57% | F |
| 4BR | $2,550 | $430,206 | 0.59% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 01535, specifically North Brookfield, MA, centers around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1480, while the Census ACS reports the market rent at $981. This creates a gap of $499, or approximately 34%, between what landlords can charge under the Section 8 program and the prevailing market rates.
Given that the FMR exceeds the market rent, this scenario presents a unique opportunity for landlords and small-portfolio investors. Voucher tenants, who are guaranteed rental payments through the government's Section 8 program, ensure a steady income stream. This makes North Brookfield an attractive yield play, where landlords can receive higher rents than the local market average without the risk associated with finding and retaining non-subsidized tenants.
In North Brookfield, where 30.7% of residents are renters, the median home value stands at $383,706, and the median household income is $79,285. These figures indicate a community where a portion of the population may rely on rental assistance programs like Section 8 to secure affordable housing. Landlords participating in the program can benefit from the higher FMR rate, which compensates for the administrative costs and potential delays in receiving rental payments.
However, it is important to note that accepting Section 8 tenants does come with certain considerations. While the guaranteed income provides stability, the rental rates are still lower than the FMR, meaning landlords will not be able to charge the full FMR rate to voucher holders. This discrepancy can impact the overall profitability of properties in this area. Nonetheless, the opportunity to receive a consistent income that is above the local market rate makes North Brookfield a viable option for those interested in the Section 8 program.
To summarize, the gap between the FMR and market rent in ZIP 01535 highlights the potential benefits for landlords and investors. The Section 8 program allows them to capitalize on higher rental rates compared to the open market, making it a strategic choice in North Brookfield, MA.
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.