Location: Fitchburg-Leominster, 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 | $1,630 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $2,110 |
| 3 Bedrooms | $2,640 |
| 4 Bedrooms | $3,010 |
| 5 Bedrooms | $3,492 |
| 6 Bedrooms | $3,911 |
| 7 Bedrooms | $4,224 |
| 8 Bedrooms | $4,435 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,110 | $461,701 | 0.46% | F |
| 3BR | $2,640 | $581,581 | 0.45% | F |
| 4BR | $3,010 | $738,128 | 0.41% | F |
U.S. Census Bureau data (2024)
Sterling, MA (ZIP 01564) presents an interesting scenario for real-estate investors focused on Section 8 properties. The Fair Market Rent (FMR) for FY 2024 stands at $1,840, which is notably higher than the market rent of $1,699. This discrepancy suggests a potential for higher yields when leasing properties to tenants participating in the Section 8 program.
The median home value in Sterling is $585,338, indicating that the area is relatively affluent. However, the percentage of renters who are likely to be part of the Section 8 program is only 13.7%, which is quite low. This low rental participation rate could imply less demand for Section 8 properties, thereby affecting the stability of cash flows from such investments.
Additionally, the average household income in the area is $129,063, which is substantial and supports the notion of an affluent community. Despite this, the limited data on days on market (DOM) for rental listings makes it challenging to assess how quickly properties might be leased, particularly those targeting Section 8 tenants.
In summary, ZIP 01564 leans towards a high-yield/low-stability market. The primary drivers for this classification are the higher FMR compared to the market rent, which offers the potential for increased returns. Conversely, the low percentage of renters and the lack of data on DOM indicate a less stable environment for maintaining consistent cash flow from Section 8 properties.
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.