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 | $2,130 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,230 | $230,286 | 0.97% | C |
| 2BR | $2,650 | $644,173 | 0.41% | F |
| 3BR | $3,180 | $668,867 | 0.48% | F |
| 4BR | $3,510 | $943,876 | 0.37% | F |
| 5BR | $4,072 | $1,113,250 | 0.37% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 01746, which encompasses Holliston, Massachusetts, stands at $159,817. This figure provides a strong foundation for understanding the economic landscape of potential renters in the area. At a market rate of $1,821 per month, based on Census ACS data, a household in Holliston can indeed afford the average rent. The median income suggests that many residents have the financial capability to meet these rental costs without significant strain.
However, when comparing the market rate to the federal payment standard of Fair Market Rent (FMR), which is set at $2,380 for ZIP 01746 in fiscal year 2024, it becomes evident that there is a substantial gap between what the market demands and what vouchers cover. Landlords accepting Section 8 vouchers will receive a lower monthly payment compared to the market rate, indicating a clear trade-off between the two strategies.
Holliston has a relatively low percentage of renters at 12.6%, with a total population of 15,094. This means that the pool of potential tenants is limited, leading to increased competition among landlords. Given the disparity between the market rate and the voucher payment standard, landlords must carefully consider their tenant acquisition strategy.
For landlords looking to maximize their rental income, focusing on cash-paying tenants who can afford the market rate might be more lucrative. However, the limited number of renters could make attracting these tenants challenging. On the other hand, landlords who accept Section 8 vouchers may find it easier to fill vacancies due to the higher subsidy amount compared to the market rate, even though the monthly income would be less.
The takeaway for landlords is to weigh the benefits of higher immediate income from market-rate tenants against the security and ease of filling vacancies that come with accepting Section 8 vouchers. In a competitive market with a small pool of renters, both strategies have their merits and should be considered based on individual property needs and goals.
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.