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 | $2,170 |
| 1 Bedroom | $2,180 |
| 2 Bedrooms | $2,810 |
| 3 Bedrooms | $3,520 |
| 4 Bedrooms | $4,010 |
| 5 Bedrooms | $4,652 |
| 6 Bedrooms | $5,210 |
| 7 Bedrooms | $5,627 |
| 8 Bedrooms | $5,908 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,180 | $397,099 | 0.55% | F |
| 2BR | $2,810 | $548,413 | 0.51% | F |
| 3BR | $3,520 | $674,878 | 0.52% | F |
| 4BR | $4,010 | $970,217 | 0.41% | F |
| 5BR | $4,652 | $1,186,087 | 0.39% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 01581, Westborough, MA, stands at $141,944. Despite this relatively high figure, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is $2,679. This places a significant burden on renters, as it represents a substantial portion of their monthly income.
Comparatively, the Fair Market Rent (FMR) for the zip code for fiscal year 2024 is set at $2,380. This amount is what housing vouchers aim to cover, providing a benchmark for affordability. However, it falls short of the actual market rate, indicating an affordability gap for those relying solely on vouchers.
With 38.2% of the population being renters and a total population of 21,944, there is a notable demand for rental properties. Yet, the affordability gap means that landlords face stiff competition when it comes to attracting tenants who can pay the full market rate. Those who rely on vouchers may struggle to find properties within their budget, leading to fewer options and increased competition among them.
For landlords considering their strategy, the takeaway is clear. While cash-paying tenants might offer higher rents, they are less likely to be found due to the high cost of living relative to income. Voucher recipients, though bringing in a fixed rate, ensure a steady stream of income and reduce the risk of vacancy. Landlords should weigh these factors carefully, understanding that while voucher payments are lower than market rates, they provide stability and access to a segment of the rental market that is underserved.
In summary, the affordability gap in Westborough, MA, suggests that landlords must decide between higher-risk, higher-reward cash-paying tenants or the more stable but potentially lower-paying voucher tenants. Given the economic realities, voucher tenants represent a viable option for landlords looking to maintain occupancy and avoid prolonged vacancies.
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.