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 | $2,480 |
| 1 Bedroom | $2,560 |
| 2 Bedrooms | $3,060 |
| 3 Bedrooms | $3,650 |
| 4 Bedrooms | $4,020 |
| 5 Bedrooms | $4,663 |
| 6 Bedrooms | $5,223 |
| 7 Bedrooms | $5,641 |
| 8 Bedrooms | $5,923 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,060 | $605,334 | 0.51% | F |
| 3BR | $3,650 | $1,170,326 | 0.31% | F |
| 4BR | $4,020 | $1,768,514 | 0.23% | F |
| 5BR | $4,663 | $2,274,968 | 0.2% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 01773, which encompasses Lincoln, Massachusetts, in Middlesex County, operate under specific financial guidelines that landlords should be aware of. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $2,800. This SAFMR is the maximum amount that the housing authority will pay for a unit of this size, reflecting the local rental market conditions.
Local market rent, according to Census ACS data, averages around $2,699 for a similar two-bedroom unit. However, the SAFMR is higher, which can be beneficial for landlords who might otherwise receive less from market rates. It's important to note that the SAFMR is specifically tailored for this ZIP code, ensuring that it accurately represents the local rental environment.
A Section 8 voucher works by covering the difference between what a tenant can afford and the actual rent. Typically, the tenant's contribution is 30% of their adjusted income. For simplicity, let's assume an average adjusted income of $3,000 per month for a tenant. In this case, the tenant would contribute approximately $900 towards the rent. The remaining amount, up to the SAFMR limit, is covered by the housing authority.
In addition to the base rent, there are utility allowances. These allowances vary but are generally designed to cover typical utility costs. Assuming a utility allowance of $300, the total reimbursement a landlord can expect for a two-bedroom unit would be the sum of the tenant's contribution and the utility allowance, capped at the SAFMR limit.
To illustrate, if the total rent and utilities come to $2,800, and the tenant contributes $900, the housing authority would reimburse the landlord for the remaining $1,900. If the total rent and utilities are lower, say $2,500, then the housing authority would still only reimburse up to the SAFMR limit, meaning they would cover $1,600, bringing the total payment to $2,500.
The typical reimbursement gap or surplus in ZIP 01773 for a two-bedroom unit is minimal, given that the SAFMR is slightly above the local market rent. Landlords can expect a slight surplus if they charge exactly the SAFMR, as the local market rent is lower. However, if they aim to maximize profits, they might set rents just below the SAFMR to avoid leaving money on the table, knowing that the housing authority will cover the difference up to the limit.
Overall, landlords in ZIP 01773 can anticipate stable and predictable income from Section 8 vouchers, with the potential for a small surplus when compared to the local market rent.
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.