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 | $1,740 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $2,820 |
| 4 Bedrooms | $3,210 |
| 5 Bedrooms | $3,724 |
| 6 Bedrooms | $4,171 |
| 7 Bedrooms | $4,505 |
| 8 Bedrooms | $4,730 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,250 | $374,384 | 0.6% | D |
| 3BR | $2,820 | $459,496 | 0.61% | D |
| 4BR | $3,210 | $530,769 | 0.6% | D |
| 5BR | $3,724 | $642,813 | 0.58% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 01602, located in Worcester, MA, does not work favorably for landlords. The Fair Market Rent (FMR) set by HUD for FY 2024 is $1840, which is significantly lower than the market rent indicated by ZORI at $2,640. This discrepancy suggests that landlords may struggle to cover operational costs and maintain profitability at the HUD-recommended rates.
Acquisition in this area is relatively affordable. With a median home value of $448,962, potential investors can enter the market without requiring exorbitant capital. However, the lack of available data on days on market (DOM) and the low percentage of homes needing price cuts (0.2%) imply a stable but not overly competitive market for property purchases. Landlords should expect a steady, rather than rapidly fluctuating, housing market.
Tenant demand is strong in ZIP 01602. The area has a population of 27,092, with 41.1% of residents being renters. This indicates a substantial pool of potential tenants, making it likely that rental properties will be occupied consistently. The high renter share also supports the idea that renting is a preferred option among the local populace, further bolstering the case for rental investment.
Verdict: Despite the unfavorable rent math due to the significant gap between the HUD Fair Market Rent and the actual market rent, the area presents an affordable opportunity for acquisition with a median home value of $448,962. Strong tenant demand, evidenced by the high renter share of 41.1%, ensures that rental units will be filled. Landlords and small-portfolio investors should consider setting rents closer to the market rate of $2,640 to ensure profitability, while leveraging the consistent tenant base to secure steady occupancy.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.