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 | $441,718 | 0.42% | F |
| 3BR | $2,300 | $518,944 | 0.44% | F |
| 4BR | $2,550 | $668,221 | 0.38% | F |
| 5BR | $2,958 | $765,539 | 0.39% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 01612 (Paxton, MA) on the axes of yield and stability reveals it as a steady-cashflow zone. This conclusion is driven by the following figures:
Yield Analysis: The Fair Market Rent (FMR) for ZIP 01612 in fiscal year 2024 is set at $1,500. This is notably higher than the market rent of $1,386, indicating a positive spread for landlords who can secure Section 8 tenants. However, the median home value stands at $549,678, which is significantly higher than the FMR. This suggests that while there is a decent rental yield, it is not so high as to be considered a 'flip-style' market where quick profits are the primary goal.
Stability Analysis: The renter population in Paxton represents only 8.2% of the total population, which is relatively low. While this could suggest less demand for rental properties, it also implies that the majority of residents are homeowners, contributing to a stable local economy. Additionally, the median household income is $134,083, which is quite robust and indicates that tenants are likely to have reliable financial backing, reducing the risk of default on rental payments.
The lack of data on days on market (DOM) makes it difficult to assess the speed at which rental units turn over, but given the strong income levels, it is reasonable to infer that the market is stable enough to ensure consistent cash flow. Landlords and small-portfolio investors should find this environment favorable for long-term investment strategies rather than short-term speculative gains.
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.