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 | $1,430 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,860 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,860 | $380,990 | 0.49% | F |
| 3BR | $2,300 | $423,859 | 0.54% | F |
| 4BR | $2,550 | $479,324 | 0.53% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP code 01611, Leicester, MA, are significant. Firstly, tenant turnover is a critical issue. The market rent stands at $1,177, which is notably lower than the Fair Market Rent (FMR) of $1,480 for FY 2024. This disparity suggests that tenants might be more inclined to move when they find better rental options outside of the subsidized program. Secondly, vacancy exposure is a concern. The days on market (DOM) data is unavailable, indicating a lack of transparency in the local real estate market, which can lead to prolonged vacancies and lost income. Thirdly, deferred maintenance is a risk factor. With an average home value of $421,051 and a median income of $109,868, many residents may struggle to afford necessary repairs and maintenance, leading to potential property deterioration over time.
However, these risks must be weighed against the high concentration of renters in the area. A 17.0% renter share indicates a robust demand for rental housing, which often translates into a higher demand for Section 8 vouchers. This demand can help stabilize occupancy rates and provide a steady stream of qualified tenants who are committed to maintaining their living spaces and fulfilling lease obligations.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.