Location: Lawrence, MA | Metro: Lawrence, MA-NH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,500 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $2,120 |
| 3 Bedrooms | $2,530 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
U.S. Census Bureau data (2024)
The analysis for ZIP 01840, located in Lawrence, Massachusetts, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 01840 in fiscal year 2024 is set at $1,760, whereas the Zillow Observed Rent Index (ZORI) indicates a market rent of $2,352. This creates a gap of $592 per month, which translates to approximately 33.6% of the market rent.
The discrepancy between FMR and market rent means that landlords who accept Section 8 tenants will be renting their properties below the open-market rate. In ZIP 01840, where 97.5% of residents are renters, and the median home value is $375,332, this can have a substantial impact on the financial yield of the investment. Given the median household income of $42,211, the disparity between the FMR and market rent highlights the economic challenges faced by low-income renters in the area.
Accepting Section 8 tenants in ZIP 01840 comes with the cost of receiving lower rent payments compared to what the market would offer. However, the stability and reliability of government-backed payments can offset the lower rent amounts. It is crucial for landlords to understand the local context and the implications of this gap when considering whether to participate in the Section 8 program.
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.