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 | $1,430 |
| 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 | $317,373 | 0.59% | F |
| 3BR | $2,300 | $388,017 | 0.59% | F |
| 4BR | $2,550 | $403,129 | 0.63% | D |
| 5BR | $2,958 | $439,556 | 0.67% | D |
U.S. Census Bureau data (2024)
The ZIP code 01550 encompasses a significant portion of Southbridge, Massachusetts, a town known for its diverse residential landscape. With a total population of 17,928, the area stands out due to its high percentage of renters at 57.3%, indicating a strong demand for rental properties. The median household income in this neighborhood is $66,287, which reflects a middle-class community capable of supporting various types of housing. The median home value is notably higher at $373,454, suggesting that homeownership is valued and financially feasible for many residents.
Moving into the economic analysis of renting, the Fair Market Rent (FMR) for ZIP 01550 in fiscal year 2024 is set at $1,480. This figure contrasts sharply with the market rent, measured by Zillow's ZORI index, which is currently at $1,800. This discrepancy highlights a potential opportunity for landlords and small-portfolio investors who can leverage the gap between government-supported rents and market rates to maximize profitability.
Given these metrics, Southbridge, MA under ZIP 01550, aligns well with both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability provided by the Section 8 program ensures a steady stream of income without the need for active property management. Meanwhile, for those inclined towards a more hands-on approach, the possibility of increasing rents beyond the FMR while still offering affordable housing could lead to enhanced returns on investment. The robust rental market and the significant difference between FMR and market rent suggest that there is room for both strategies to be successful in this area.
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.