Location: Lawrence, MA | Metro: Lawrence, 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 | $1,640 |
| 1 Bedroom | $1,770 |
| 2 Bedrooms | $2,320 |
| 3 Bedrooms | $2,760 |
| 4 Bedrooms | $3,050 |
| 5 Bedrooms | $3,538 |
| 6 Bedrooms | $3,963 |
| 7 Bedrooms | $4,280 |
| 8 Bedrooms | $4,494 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,770 | $246,948 | 0.72% | D |
| 2BR | $2,320 | $440,059 | 0.53% | F |
| 3BR | $2,760 | $569,062 | 0.49% | F |
| 4BR | $3,050 | $657,260 | 0.46% | F |
| 5BR | $3,538 | $749,311 | 0.47% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1880 for ZIP 01830 (Haverhill, MA) can cover the mortgage on a $552,085 home. To address this concern, let's consider the median home value in Haverhill, which stands at $462,300 according to recent data. Given that the median home value is lower than the specific home price mentioned, it indicates that the home in question is above average in terms of cost. However, the current average mortgage rate in the area is not directly provided. Assuming a typical rate, a mortgage on a $552,085 home would likely exceed $1880 per month, especially considering the need for property taxes and insurance.
The next objection could be regarding the renter demand at 42.2%. The data shows that approximately 46.5% of housing units in ZIP 01830 are rented, suggesting a robust demand for rental properties. With a low vacancy rate of 2.8%, it is evident that there is strong competition among renters, indicating that the market can support rental rates close to the FMR.
Finally, an investor might ask if housing vouchers will keep pace with market rents of $2,270. Unfortunately, the data does not provide specific information on the growth rate of housing vouchers in ZIP 01830. However, it is known that voucher amounts can vary widely and may not always match the market rents. Landlords should carefully evaluate the terms of voucher programs and ensure they align with their financial needs before accepting tenants with vouchers.
In summary, while the FMR of $1880 is unlikely to fully cover the mortgage on a $552,085 home, the strong renter demand at 46.5% suggests that rental properties can be profitable. Concerns about housing vouchers should be addressed by understanding the specific terms and amounts offered through local programs.
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.