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 | $1,630 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $2,110 |
| 3 Bedrooms | $2,640 |
| 4 Bedrooms | $3,010 |
| 5 Bedrooms | $3,492 |
| 6 Bedrooms | $3,911 |
| 7 Bedrooms | $4,224 |
| 8 Bedrooms | $4,435 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,640 | $170,606 | 0.96% | C |
U.S. Census Bureau data (2024)
The ZIP code 01608 stands out due to its unique mix of rental concentration and relatively high median home values compared to the median income. With 4,932 residents, this area boasts an impressive 94.0% rental rate, indicating a strong demand for rental properties. The median income in ZIP 01608 is $45,687, which is lower than the median home value of $189,605, suggesting that homeownership might be less accessible for many residents.
Moving into the voucher economics, the Fair Market Rent (FMR) for ZIP 01608 for fiscal year 2024 is set at $1,670, whereas the market rent, as measured by ZORI (Zillow Observed Rent Index), is $1,826. This indicates a slight premium in the market over the subsidized rates, which could pose challenges for landlords looking to maintain profitability while participating in the Section 8 program. However, the high rental concentration suggests that there is a significant portion of the population relying on rental housing, making it a viable option for landlords who can manage their costs effectively.
Based on the data signature, ZIP 01608 appears to be a stable market with consistent demand for rental properties. The high percentage of renters and the established median home value indicate a settled community where rental housing plays a critical role. For small-portfolio investors, this stability offers a reliable investment opportunity, although they must be prepared to navigate the economic realities of the voucher system. The difference between the FMR and market rent should be carefully considered when setting rental prices to ensure compliance with the program while also covering operational costs.
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.