Location: Worcester, MA | Metro: Worcester, MA HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The median income in ZIP code 01537 stands at $102,956, which places it above the national average. However, when considering the market rate for rent at $1,138, households must allocate a significant portion of their earnings towards housing costs. This figure represents nearly 14% of the annual median income, assuming a standard guideline that no more than 30% of income should go toward housing.
In comparison, the Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD) for ZIP 01537 in fiscal year 2024 is $1,480. This means that landlords participating in the Section 8 voucher program could potentially receive higher payments per unit than the current market rate. The disparity between the HUD FMR and the actual market rate suggests an affordability gap for tenants without vouchers.
Given that only 22.3% of the 2,278 residents are renters, competition among landlords for these tenants can be intense. Landlords who accept Section 8 vouchers might find themselves in a stronger position due to the financial support they receive, which can help cover the higher FMR set by HUD. For those focusing on cash-paying tenants, the challenge lies in finding individuals willing and able to pay the market rate, especially if it exceeds what they perceive as affordable based on their income.
The takeaway for landlords is clear: accepting Section 8 vouchers can provide a steady stream of rental income at a rate higher than the current market, reducing the risk of vacancies. However, landlords who prefer cash-paying tenants must be prepared to offer competitive rates or value-added services to attract and retain renters in a market where affordability is a concern for many.
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.