Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH 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 | $2,850 |
| 1 Bedroom | $2,950 |
| 2 Bedrooms | $3,520 |
| 3 Bedrooms | $4,190 |
| 4 Bedrooms | $4,630 |
| 5 Bedrooms | $5,371 |
| 6 Bedrooms | $6,016 |
| 7 Bedrooms | $6,497 |
| 8 Bedrooms | $6,822 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,950 | $542,319 | 0.54% | F |
| 2BR | $3,520 | $733,252 | 0.48% | F |
| 3BR | $4,190 | $1,176,615 | 0.36% | F |
| 4BR | $4,630 | $1,600,390 | 0.29% | F |
| 5BR | $5,371 | $2,389,555 | 0.22% | F |
U.S. Census Bureau data (2024)
The Section 8 program analysis for ZIP code 01742, which encompasses Concord, Massachusetts, reveals a notable gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $3490, while the Zillow Observed Rent Index (ZORI), reflecting the current market conditions, is at $3445. This indicates that the FMR is slightly higher than the market rent by $45, or approximately 1.3%.
In this scenario, where the FMR exceeds the market rent, landlords can leverage this to their advantage. The higher FMR means that voucher tenants can potentially pay a rent that is closer to the open-market rate, thus making it a yield play. Landlords who accept Section 8 vouchers can expect to receive a rental payment that is nearly at market levels, ensuring they do not lose out financially compared to renting to non-voucher tenants.
Concord, MA, has a rental population of 24.0%, indicating a significant portion of residents who rely on rental properties. With a median home value of $1,434,084, it's clear that homeownership in the area is quite expensive, driving many towards rental options. Additionally, the median household income of $195,125 suggests that while some residents can afford higher rents, others might seek subsidized housing through programs like Section 8.
However, accepting voucher tenants also comes with its own set of challenges. Landlords must ensure that their properties meet HUD standards, which can involve additional maintenance costs. Moreover, the administrative process of dealing with vouchers can be cumbersome, involving regular inspections and paperwork. Despite these costs, the slight premium of $45 above the market rent makes it financially viable for landlords to consider accepting Section 8 tenants.
To summarize, the gap between FMR and market rent in ZIP 01742 presents an opportunity for landlords to maintain yields comparable to the open market. Given the high cost of living in Concord, MA, the benefits of this arrangement outweigh the potential downsides, making it a strategic choice for real estate investors looking to tap into the rental market.
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.