Location: Lawrence, 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 | $2,300 |
| 2 Bedrooms | $3,010 |
| 3 Bedrooms | $3,590 |
| 4 Bedrooms | $3,960 |
| 5 Bedrooms | $4,594 |
| 6 Bedrooms | $5,145 |
| 7 Bedrooms | $5,557 |
| 8 Bedrooms | $5,835 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,010 | $632,229 | 0.48% | F |
| 3BR | $3,590 | $729,584 | 0.49% | F |
| 4BR | $3,960 | $987,903 | 0.4% | F |
| 5BR | $4,594 | $1,066,953 | 0.43% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 01833 in Georgetown, MA, centers around the significant gap between the Fair Market Rent (FMR) set at $2690 for fiscal year 2024 and the actual market rent reported at $2,223 according to the Census ACS. This gap amounts to $467, which represents a 21% difference between the two figures. The implications of this gap are substantial for landlords and small-portfolio investors.
Given that the FMR exceeds the market rent, it becomes evident that voucher tenants can offer a yield play. Landlords accepting Section 8 vouchers can secure rental income that is higher than what they might receive from open-market tenants. This scenario presents an opportunity to increase cash flow without necessarily having to raise rents above the market rate. For instance, a landlord could charge $2,223, the typical market rent, and still receive the higher FMR payment of $2690 due to the voucher subsidy. This makes the investment in properties in ZIP 01833 attractive for those seeking to maximize returns.
In the context of Georgetown, MA, where only 16.1% of residents are renters and the median home value stands at $778,187, the presence of a relatively high FMR compared to market rent can be particularly beneficial. The median income of $153,750 suggests that while many residents can afford to purchase homes, those who do rent may struggle to find affordable options. Thus, landlords who participate in the Section 8 program can fill a critical need in the local housing market while also benefiting financially from the higher FMR payments.
However, it's important to note that accepting Section 8 vouchers comes with its own set of considerations. Landlords must adhere to HUD standards and undergo regular inspections, which can add administrative costs. Additionally, the process of finding and qualifying for voucher tenants can be time-consuming. Despite these challenges, the financial incentive provided by the FMR being higher than the market rent makes the potential rewards worthwhile for savvy investors looking to capitalize on the demand for affordable housing.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.