Section 8 Fair Market Rent (FMR) for ZIP 01586 - 2027
Location: Worcester, MA | Metro: Worcester, MA HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,530 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
To decide whether you should buy in ZIP code 01586 (Unknown, MA) for Section 8 investments, follow this decision tree:
- 1) Does FMR $1620 (zip FY 2024) cover your debt service?
- Yes: Proceed to the next question.
- No: This area is not financially viable for Section 8 investments due to the low Fair Market Rent (FMR) of $1620, which does not sufficiently cover the necessary debt service costs.
- 2) How does market rent compare to FMR?
- Above FMR: The market rent is higher than the FMR, indicating that properties may be overpriced for Section 8 tenants. Consider if the difference is significant enough to affect your investment strategy.
- At FMR: Market rents align with the FMR, making this a suitable area for Section 8 investments as long-term rental income will match the expected subsidy payments.
- Below FMR: Market rents are lower than the FMR, suggesting potential profitability for Section 8 properties. However, ensure there's enough demand to fill vacancies.
- 3) Is the combination of 0% renters and N/A-day Days on Market (DOM) sufficient for demand?
- 0% renters + N/A-day DOM: With no renters in the area and an unknown DOM, the demand for rental properties is unclear. It depends on the local job market and availability of Section 8 vouchers. Research these factors before making a decision.
The Fair Market Rent of $1620 sets a critical baseline for covering operational costs and debt service. Ensure that your investment property can sustain itself at this rate. Additionally, understanding the local rental market dynamics and tenant demand is crucial for successful Section 8 investments.
Data Sources: FMR data from HUD (2027).
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.