Location: Lowell, MA | Metro: Lawrence, MA-NH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,170 |
| 1 Bedroom | $2,350 |
| 2 Bedrooms | $3,070 |
| 3 Bedrooms | $3,660 |
| 4 Bedrooms | $4,030 |
| 5 Bedrooms | $4,675 |
| 6 Bedrooms | $5,236 |
| 7 Bedrooms | $5,655 |
| 8 Bedrooms | $5,938 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 01810, which encompasses Andover, MA, in Essex County, operate under specific parameters set by the government. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is $2,530. This figure is crucial because it determines the maximum amount a landlord can receive from the Housing Choice Voucher program for a unit in this ZIP code.
Local market rents, as measured by Zillow's ZORI (Zillow Observed Rent Index), currently stand at $2,632 for a similar two-bedroom unit. This indicates that the SAFMR is slightly below the average market rent in Andover, creating a scenario where landlords might receive less than the going rate if they accept a Section 8 voucher.
To understand the actual reimbursement a landlord would receive, consider the following breakdown:
Let’s assume an average utility allowance of $250. If a tenant’s portion of the rent is $759 (based on a hypothetical 30% of adjusted income of $2,530), then the total reimbursement to the landlord would be the sum of the tenant’s contribution and the utility allowance. Therefore, the landlord would receive $1,009 from the tenant and $250 for utilities, totaling $1,259.
Given the SAFMR of $2,530, the landlord would receive a voucher reimbursement of $2,530 minus the tenant’s contribution of $759, equating to $1,771. Adding the utility allowance of $250 brings the total reimbursement to $2,021.
This means that compared to the local market rent of $2,632, there is a reimbursement gap of $611. Landlords must carefully weigh this gap against the benefits of long-term, stable tenancy that Section 8 vouchers provide. While the gap exists, it is important to note that the program offers consistent payments directly from the housing authority, reducing the risk of non-payment or delinquency.
In summary, landlords in ZIP 01810 should expect a reimbursement of approximately $2,021 for a two-bedroom unit, leaving a gap of $611 when compared to the local market rent of $2,632.
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.