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 | $1,610 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $2,080 |
| 3 Bedrooms | $2,610 |
| 4 Bedrooms | $2,970 |
| 5 Bedrooms | $3,445 |
| 6 Bedrooms | $3,858 |
| 7 Bedrooms | $4,167 |
| 8 Bedrooms | $4,375 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,080 | $296,234 | 0.7% | D |
| 3BR | $2,610 | $447,743 | 0.58% | F |
| 4BR | $2,970 | $473,310 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis for properties in ZIP code 01607, centered around Worcester, Massachusetts, highlights a significant gap between the Fair Market Rent (FMR) and the market rent as measured by the Zillow Rent Index (ZORI). For fiscal year 2024, the FMR stands at $1,630, while the ZORI indicates a market rent of $1,888. This results in a $258 discrepancy, representing a 15.8% difference between the two figures.
The lower FMR compared to the market rent means that landlords accepting Section 8 vouchers will have to lease their units at a rate below the open-market price. In Worcester, where 54.5% of residents are renters, and the median home value is $384,761 with a median income of $78,727, this gap can impact profitability. However, the stability of rental income provided by the government-backed Section 8 program can offset the lower rental rates. Voucher tenants offer a guaranteed source of income, which is especially valuable in a city with a high percentage of renters and a relatively low median income.
To put this into perspective, landlords who accept Section 8 vouchers can expect to receive a steady stream of rental payments, even if it is slightly less than what they could get from open-market tenants. The predictability of these payments can be a significant advantage, particularly in an area like Worcester, where the rental market might fluctuate due to economic conditions and the overall housing demand.
While the initial comparison suggests a disadvantage for landlords, the long-term benefits of having reliable tenants can enhance the overall yield of their investment portfolio. The analysis must consider the broader context of the local economy and the needs of the community, where affordable housing is a critical issue. Therefore, the decision to participate in the Section 8 program should weigh both the financial implications and the contribution to providing stable housing solutions in Worcester, MA.
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.