Section 8 Fair Market Rent (FMR) for ZIP 01801 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,660
1 Bedroom	$2,750
2 Bedrooms	$3,280
3 Bedrooms	$3,910
4 Bedrooms	$4,310
5 Bedrooms	$5,000
6 Bedrooms	$5,600
7 Bedrooms	$6,048
8 Bedrooms	$6,350

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 01801 (Woburn, MA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Woburn, MA, as of 2026, is set at $3150 for a two-bedroom unit. This amount represents 34.0% of the median household income in the area, which stands at $111,185. However, the actual rent for a two-bedroom unit can be significantly higher, with Zillow reporting a median price of $619,086. This translates into a price-to-FMR ratio of 16.4x, indicating that actual rents far exceed the FMR. For voucher holders, this means they face significant constraints in finding affordable housing. The FMR is designed to cover the cost of decent, safe, and sanitary housing, but in Woburn, it falls short of covering the typical rental costs. #### Affordability & Renter Profile In Woburn, 44.3% of households are renters, suggesting a substantial demand for rental properties. With a high occupancy rate of 96.4%, the market is relatively tight, indicating limited availability of rental units. Given the median household income of $111,185, many residents are likely employed in professional or managerial positions. The disparity between the FMR and actual rents suggests that the majority of renters must pay a significant portion of their income on housing, making it a challenging environment for those relying solely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 01801 presents both opportunities and challenges. The FMR for a two-bedroom unit is $3150, while the actual median rent is much higher at $619,086. This implies that properties rented at FMR levels will struggle to compete with the market rates. However, the high occupancy rate indicates strong demand, which could support rental income if the property is well-managed and located in a desirable area. To determine if this ZIP is cash-flow positive at FMR, we need to consider the operating expenses, including maintenance, utilities, and property taxes. Assuming a conservative estimate of 40% of the FMR for these expenses, the net income would be approximately $1890 per month for a two-bedroom unit. This is still a significant amount, but it is important to note that it is substantially lower than what could be earned by renting at market rates. Given the high price-to-FMR ratio, the investment grade for properties in Woburn is moderate. While there is a steady demand for rental units, the financial returns at FMR levels are not as attractive compared to other markets where the price-to-FMR ratio is lower. Investors should carefully evaluate the potential for appreciation and long-term stability before committing to this market. #### Specific Actionable Insights 1. **Focus on Location**: Given the high price-to-FMR ratio, investors should focus on acquiring properties in highly desirable locations within Woburn. Properties near schools, parks, and public transportation are likely to have better occupancy rates and higher chances of attracting tenants willing to pay closer to the FMR. 2. **Consider Multi-Family Units**: Since the FMR for larger units (3BR and 4BR) is also below market rates, investing in multi-family units could provide better financial returns. A three-bedroom unit has an FMR of $3780, which is still a considerable amount but might offer more flexibility in terms of tenant selection and overall cash flow. 3. **Evaluate Long-Term Potential**: While the immediate cash flow at FMR levels may not be optimal, investors should consider the long-term potential of the market. Woburn's proximity to Boston and its growing population suggest that property values could appreciate over time, providing additional value beyond rental income. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 01801 is to **Hold**. While the market is tight and there is a strong demand for rental properties, the high price-to-FMR ratio makes it challenging to achieve optimal cash flow. However, the potential for property appreciation and the steady demand for rentals make it a viable market for those willing to invest in the right properties and manage them effectively.

Data Sources: FMR data from HUD (2027). 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.