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 | $2,520 |
| 1 Bedroom | $2,600 |
| 2 Bedrooms | $3,110 |
| 3 Bedrooms | $3,710 |
| 4 Bedrooms | $4,090 |
| 5 Bedrooms | $4,744 |
| 6 Bedrooms | $5,313 |
| 7 Bedrooms | $5,738 |
| 8 Bedrooms | $6,025 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,110 | $761,007 | 0.41% | F |
| 3BR | $3,710 | $992,044 | 0.37% | F |
| 4BR | $4,090 | $1,309,942 | 0.31% | F |
| 5BR | $4,744 | $1,678,781 | 0.28% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 01770 (Sherborn, MA) on the axes of yield and stability reveals it to be a steady-cashflow zone. The Federal Market Rent (FMR) for FY 2024 is set at $2,380, which is slightly above the market rent of $2,338. This indicates a modest yield potential for rental properties in the area. However, the median home value stands at $1,224,528, suggesting that the property values are quite high, which can impact the overall investment strategy.
On the stability axis, the percentage of renters is relatively low at 10.8%, which implies a predominantly owner-occupied market. While the median household income is substantial at $250,001, the lack of data on days on market (DOM) suggests that there isn't enough information to fully assess the stability of the rental market. Nonetheless, the high median income supports the notion that tenants who do rent in this area are likely to have stable financial situations, contributing to lower vacancy rates and more consistent cash flows.
The combination of these factors—modest rental yields and a low percentage of renters with high incomes—points towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. Investors looking to capitalize on quick flips might find the property values too high and the rental market too small to offer significant returns. Conversely, those seeking long-term, stable investments will find comfort in the high average income levels, which correlate with reliable tenants.
To summarize, ZIP 01770 offers a balanced environment where the primary focus should be on generating consistent rental income rather than rapid appreciation or flipping properties for profit. The figures indicate that while the yield is not exceptionally high, the stability of the tenant pool and the general economic health of the area make it an attractive option for steady cash flow.
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.