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 | $1,560 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $2,020 |
| 3 Bedrooms | $2,530 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,570 | $205,306 | 0.76% | D |
| 2BR | $2,020 | $251,019 | 0.8% | C |
| 3BR | $2,530 | $401,698 | 0.63% | D |
| 4BR | $2,880 | $433,375 | 0.66% | D |
U.S. Census Bureau data (2024)
The classification of ZIP code 01610 in Worcester, MA, reveals a balanced market that offers both decent yield and moderate stability. The Fair Market Rent (FMR) for ZIP 01610 in fiscal year 2024 is set at $1,540, which is significantly lower than the average market rent of $2,135. This difference suggests that landlords can potentially achieve higher rental yields if they manage to secure tenants willing to pay closer to market rates.
However, the median home value of $369,310 is relatively high compared to the median household income of $51,472, indicating that the area might be less affordable for some potential tenants. Despite this, the 80.8% rental rate shows a strong demand for rental properties, which is a positive sign for landlords looking to maintain occupancy levels.
To determine whether this is a high-yield/low-stability market or a steady-cashflow zone, we must consider the factors driving each category. In a high-yield/low-stability market, landlords often aim for quick flips and short-term gains, which typically involves areas with rapidly changing demographics or economic conditions. However, in ZIP 01610, the day DOM (Days on Market) data is unavailable, making it difficult to assess the speed at which properties are rented out. Nevertheless, the high rental rate and the significant gap between FMR and market rents suggest that landlords can achieve above-average yields without necessarily experiencing low stability.
The median income figure of $51,472 provides insight into the financial health of the area's residents. While this income level is not exceptionally high, it still supports the possibility of attracting tenants who can afford the market rent. Given the median home value, it's clear that homeownership is less accessible, thereby supporting the rental market's strength.
In summary, ZIP 01610 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The key figures supporting this conclusion include the 80.8% rental rate, indicating consistent demand, and the reasonable gap between FMR and market rents, allowing for competitive but sustainable yields. Landlords should focus on maintaining quality properties to attract tenants willing to pay closer to the market rate of $2,135, thus ensuring steady cash flow and avoiding the risks associated with low-stability markets.
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.