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 | $1,610 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $2,090 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $2,980 |
| 5 Bedrooms | $3,457 |
| 6 Bedrooms | $3,872 |
| 7 Bedrooms | $4,182 |
| 8 Bedrooms | $4,391 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,090 | $460,675 | 0.45% | F |
| 3BR | $2,620 | $605,481 | 0.43% | F |
| 4BR | $2,980 | $751,397 | 0.4% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 01541, Princeton, MA, stands at $158,750. This figure places the area in a higher income bracket, yet it still presents challenges when considering the market rate for rent, which is $897 according to the Census ACS. At first glance, it might seem that households could easily afford this amount, but deeper analysis reveals a more nuanced situation.
The Federal Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1510, significantly higher than the market rate. This discrepancy highlights the financial burden faced by renters who rely on vouchers. For those without vouchers, the $897 market rate is manageable given the median income, but it still represents a considerable portion of their monthly budget.
With only 5.7% of the population being renters and a total population of 3,529, the competition among landlords is relatively low. However, the affordability gap between the market rate and the FMR means that landlords should carefully consider their strategy regarding voucher tenants versus those paying cash. While voucher payments ensure a steady income, they come with additional administrative work and potential restrictions.
The takeaway for landlords is clear: while the market rate is lower than the FMR, indicating a possible opportunity for attracting voucher tenants, the limited rental market suggests focusing on providing quality accommodations that appeal to both types of tenants. Landlords should weigh the benefits of guaranteed income from vouchers against the ease and potentially higher rates of cash-paying tenants. In ZIP 01541, diversifying tenant mix can be a prudent approach to maximize occupancy and profitability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.