Location: Lowell, 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 | $2,130 |
| 1 Bedroom | $2,340 |
| 2 Bedrooms | $3,050 |
| 3 Bedrooms | $3,680 |
| 4 Bedrooms | $4,010 |
| 5 Bedrooms | $4,652 |
| 6 Bedrooms | $5,210 |
| 7 Bedrooms | $5,627 |
| 8 Bedrooms | $5,908 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,340 | $273,887 | 0.85% | C |
| 2BR | $3,050 | $522,804 | 0.58% | F |
| 3BR | $3,680 | $698,435 | 0.53% | F |
| 4BR | $4,010 | $790,410 | 0.51% | F |
| 5BR | $4,652 | $863,380 | 0.54% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 01821, Billerica, MA, stands at $149,042. This figure places many households in a position where they can afford the market rate rent of $2,739, known as the ZORI (Zillow Observed Rent Index). However, when comparing this market rate to the Fair Market Rent (FMR) set by HUD for the fiscal year 2024, which is $2,420, there is a significant gap.
The FMR is the amount that Section 8 vouchers will cover, making it a critical benchmark for both tenants and landlords. In Billerica, the difference between the ZORI and the FMR is $319 per month. This means that while some households can afford the market rate, those relying on Section 8 vouchers face an affordability gap that could deter them from renting market-rate properties.
Billerica has a rental population of 17.8%, indicating that nearly one in five residents are renters. Given the town's total population of 30,143, this translates to approximately 5,369 individuals who might be looking for rental housing. The affordability gap suggests that these renters have limited options if they wish to stay within their budgeted voucher amounts.
For landlords considering whether to accept Section 8 vouchers or focus on cash-paying tenants, the data points to a strategic decision. Accepting vouchers ensures a steady stream of income guaranteed by the government, albeit at a lower rate than market conditions allow. On the other hand, targeting cash-paying tenants offers the potential for higher monthly rents but requires navigating a competitive landscape where affordability is a key concern for many.
The takeaway for landlords is clear: understanding the local income levels and the disparity between market rates and voucher payments is crucial. Landlords who choose to participate in the voucher program should expect to receive $2,420 per month, which is less than the market rate but still a substantial amount. Those opting to cater to cash-paying tenants must balance the desire for higher rents with the reality of the affordability gap, potentially losing out to competitors willing to accept vouchers.
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.