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 | $2,250 |
| 2 Bedrooms | $2,930 |
| 3 Bedrooms | $3,540 |
| 4 Bedrooms | $3,850 |
| 5 Bedrooms | $4,466 |
| 6 Bedrooms | $5,002 |
| 7 Bedrooms | $5,402 |
| 8 Bedrooms | $5,672 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,930 | $460,315 | 0.64% | D |
| 3BR | $3,540 | $689,638 | 0.51% | F |
| 4BR | $3,850 | $835,307 | 0.46% | F |
| 5BR | $4,466 | $907,467 | 0.49% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 01824, which encompasses Chelmsford, MA, in the Middlesex County and Lowell, MA HUD Metro FMR Area, stands at $2470 for fiscal year 2024. In comparison, the market rent, as indicated by ZORI (Zillow Observed Rent Index), is $2,665. This means that landlords accepting Section 8 vouchers would experience marginal cash flow at the HUD FMR, as it falls slightly below the current market rent. To achieve positive cash flow, landlords might need to focus on premium units that can command higher rents.
The median home value in this area is $714,084, leading to a rent-to-price ratio of approximately 0.35%. This suggests that the rental market is relatively strong compared to the home values, indicating a healthy demand for rental properties. The median days on market (DOM) for rental listings is just 8 days, and only 0.1% of listings require a price cut, further supporting the robustness of the rental market and the strong demand for housing in Chelmsford.
Given these metrics, the strongest angle for investors in this market is likely stability. With a consistent demand for rentals and a low rate of price cuts, investors can expect reliable cash flow and minimal risk of vacancy. Additionally, the slight gap between the HUD FMR and market rent provides an opportunity for strategic investment in premium units to maximize returns.
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.