Section 8 Fair Market Rent (FMR) for ZIP 01841 - 2027

Investment Score for ZIP 01841

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,540
1 Bedroom	$1,660
2 Bedrooms	$2,170
3 Bedrooms	$2,590
4 Bedrooms	$2,850
5 Bedrooms	$3,306
6 Bedrooms	$3,703
7 Bedrooms	$3,999
8 Bedrooms	$4,199

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,660	$230,679	0.72%	D
2BR	$2,170	$341,123	0.64%	D
3BR	$2,590	$487,818	0.53%	F
4BR	$2,850	$548,388	0.52%	F
5BR	$3,306	$695,594	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 01841 (Lawrence, MA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 01841 in Lawrence, Massachusetts, is set by HUD for 2026. For a two-bedroom unit, the FMR is $2,010, which represents 42.3% of the median household income in the area. However, the actual rental prices can be significantly higher. The Zillow median price for a two-bedroom unit is $337,479, indicating a price-to-FMR ratio of 14.0x. This means that landlords who want to participate in the Section 8 program must rent their properties at rates much lower than the market average. For instance, a landlord renting a two-bedroom unit at the market rate would be charging approximately $1,680 per month ($337,479/200), which is well above the FMR of $2,010. Therefore, voucher holders face significant constraints in finding affordable housing within the FMR limits. #### Affordability & Renter Profile ZIP code 01841 has a high renter population percentage of 68.9%, suggesting a strong demand for rental properties. The occupancy rate stands at 97.6%, indicating that the rental market is tight, with few vacancies available. Given the median household income of $56,971, it is evident that many residents rely on Section 8 vouchers to afford housing. The high renter population and occupancy rate suggest that there is a limited supply of affordable units, making it challenging for renters to find suitable accommodation without assistance. #### Investor Angle For investors focusing on Section 8 properties, the key consideration is whether they can achieve positive cash flow at the FMR levels. The FMR for a two-bedroom unit is $2,010, while the Zillow median price suggests a market rental rate closer to $1,680 per month. This indicates that the FMR is actually higher than what the market might bear, potentially allowing for positive cash flow if the investor can secure a Section 8 tenant. However, the high price-to-FMR ratio (14.0x) implies that the market is overvalued compared to the FMR, which could pose challenges in acquiring properties at reasonable prices. From an investment grade perspective, ZIP code 01841 appears to be a moderate risk due to the high renter population and tight market conditions. Investors should carefully evaluate the potential for long-term stability and the likelihood of securing Section 8 tenants, given the high demand for rental properties. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1,530, which is still below the market rental rate. This could provide a better opportunity for positive cash flow and a higher chance of attracting Section 8 tenants. 2. **Target Areas with Lower Property Values**: While the overall market is overvalued, there may be pockets within ZIP code 01841 where property values are lower. Investors should conduct thorough research to identify these areas and acquire properties at more affordable prices. This will help in achieving positive cash flow and maintaining a competitive edge in the rental market. 3. **Consider Multi-Family Properties**: Multi-family properties can offer economies of scale and potentially higher returns. A three-bedroom unit has an FMR of $2,410, which is also below the market rental rate. By acquiring multi-family properties, investors can diversify their portfolio and increase their chances of securing multiple Section 8 tenants. #### Bottom Line For Section 8-focused investors, ZIP code 01841 presents a mixed picture. On one hand, the high renter population and occupancy rate indicate strong demand for rental properties. On the other hand, the high price-to-FMR ratio suggests that the market is overvalued, which could make it difficult to acquire properties at reasonable prices. Based on the data provided, the recommendation is to **Hold** investments in this ZIP code. Investors should focus on smaller units and target areas with lower property values to maximize their chances of positive cash flow and long-term stability. However, caution is advised due to the high market valuation relative to FMR, which could impact profitability and acquisition costs.

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.