Location: Eastern 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 | $1,960 |
| 1 Bedroom | $2,030 |
| 2 Bedrooms | $2,590 |
| 3 Bedrooms | $3,300 |
| 4 Bedrooms | $3,690 |
| 5 Bedrooms | $4,280 |
| 6 Bedrooms | $4,794 |
| 7 Bedrooms | $5,178 |
| 8 Bedrooms | $5,437 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,590 | $704,148 | 0.37% | F |
| 3BR | $3,300 | $711,698 | 0.46% | F |
| 4BR | $3,690 | $885,804 | 0.42% | F |
| 5BR | $4,280 | $958,397 | 0.45% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,560 for ZIP 01568 (Upton, MA) can adequately cover the mortgage on a home priced at $704,730. To address this, let's break down the numbers. Assuming a typical mortgage rate of around 4%, the monthly payment on a $704,730 home would be approximately $3,300. This is significantly higher than the FMR. However, it's important to note that FMR is set to ensure affordable housing options and does not necessarily reflect the full rental potential of a property. For landlords and small-portfolio investors, this means that while FMR might not cover the mortgage alone, it can be supplemented with other income streams or strategic pricing.
The next concern could be the relatively low percentage of renters at 13.6%. This figure suggests that the majority of residents in Upton, MA prefer homeownership over renting. While this might seem discouraging, it's worth considering that the local rental market could still be viable for those seeking affordable housing options. The low rental percentage also indicates that rental properties might have less competition, potentially allowing for higher occupancy rates if the property is well-maintained and located in a desirable area.
A final objection might center on whether voucher programs will keep pace with the current market rents of $948. Voucher amounts are adjusted annually based on HUD guidelines and local market conditions. In ZIP 01568, the gap between the FMR and market rents is substantial, suggesting that voucher holders might struggle to afford market-rate rentals. However, landlords who participate in voucher programs can receive federal subsidies, which can help bridge the financial gap. It's crucial to stay informed about local HUD adjustments and to understand the process of voucher administration to ensure steady cash flow.
While the data provides insights into these concerns, it's important to recognize that additional factors such as property taxes, insurance, and maintenance costs must be considered when evaluating the feasibility of investing in Upton, MA. Moreover, the long-term outlook for housing affordability and the economic growth of the area should also play a role in investment decisions.
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.