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 | $2,900 |
| 1 Bedroom | $3,000 |
| 2 Bedrooms | $3,580 |
| 3 Bedrooms | $4,270 |
| 4 Bedrooms | $4,710 |
| 5 Bedrooms | $5,464 |
| 6 Bedrooms | $6,120 |
| 7 Bedrooms | $6,610 |
| 8 Bedrooms | $6,941 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,000 | $328,809 | 0.91% | C |
| 2BR | $3,580 | $740,484 | 0.48% | F |
| 3BR | $4,270 | $822,604 | 0.52% | F |
| 4BR | $4,710 | $995,289 | 0.47% | F |
| 5BR | $5,464 | $1,090,378 | 0.5% | F |
U.S. Census Bureau data (2024)
ZIP 01803, located in Burlington, Massachusetts, serves as an ideal cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 01803 in fiscal year 2024 is set at $3250, which is slightly above the market rent of $3178. This positive spread ensures that landlords participating in the Section 8 program can maintain steady cash flow without the risk of rental rates falling below market levels.
The median home value in ZIP 01803 is $878,367, indicating a robust housing market where property values are likely to remain stable. This stability supports the long-term viability of the cash-flow anchor strategy, as it reduces the likelihood of sudden drops in property value that could affect the overall portfolio performance.
Burlington's low price-cut share of 0.1% and non-applicable day Days on Market (DOM) suggest a strong demand for rental properties in the area. Landlords can expect consistent occupancy rates, further reinforcing the cash-flow anchor role. The high median income of $146,436 provides assurance that tenants will be financially capable of meeting their rent obligations, reducing the risk of default.
While ZIP 01803 offers opportunities for appreciation due to its strong housing market, the primary focus should remain on its potential as a cash-flow anchor. The slight premium of the FMR over the market rent ensures that landlords can receive reliable payments even if market conditions fluctuate. This makes ZIP 01803 a valuable addition to a Section 8 portfolio, particularly for those looking to stabilize their income streams.
Moreover, the 25.8% renter share indicates a significant portion of the population prefers renting over owning, creating a healthy rental market. This statistic supports the idea that ZIP 01803 can serve as a dependable source of rental income, aligning well with the cash-flow anchor strategy.
In conclusion, ZIP 01803 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. The positive spread between the FMR and market rent, combined with the high median income and strong demand for rentals, ensures steady and predictable cash flow. These factors make ZIP 01803 a secure investment choice for landlords and small-portfolio investors.
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.