Location: Lawrence, MA | Metro: Lawrence, MA-NH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,750 |
| 1 Bedroom | $1,890 |
| 2 Bedrooms | $2,470 |
| 3 Bedrooms | $2,940 |
| 4 Bedrooms | $3,250 |
| 5 Bedrooms | $3,770 |
| 6 Bedrooms | $4,222 |
| 7 Bedrooms | $4,560 |
| 8 Bedrooms | $4,788 |
The market analysis for Section 8 investors in ZIP code 01842 reveals a stable environment with potential for steady cash flow. The HUD Fair Market Rent (FMR) for the area stands at $2000 for the fiscal year 2024. This figure represents the maximum amount that voucher holders can pay toward their housing costs, which includes rent and utilities.
While specific market rent data is currently unavailable, we can infer that voucher tenants will generally cashflow at the HUD FMR rate, assuming typical market conditions. In areas where the market rent exceeds the FMR, landlords might find that only premium units—those with added amenities or better locations—will attract tenants willing to cover the difference between the voucher amount and the market rent.
The median home value in ZIP 01842 is also not available, making it challenging to derive an exact rent-to-price ratio. However, this ratio typically helps investors understand how rental income compares to property values, providing insights into the potential for appreciation and long-term investment stability. Without this data, it's advisable to look at broader regional trends to gauge the local real estate market's health.
Regarding the days on market (DOM) and the percentage of price cuts, these metrics are currently not available. These factors are crucial in understanding the rent-versus-buy dynamics, particularly how quickly properties sell and at what discount. A high DOM could indicate a buyer's market, while frequent price cuts might suggest a challenging market for both buyers and sellers.
The strongest angle for investors in ZIP 01842 is likely to be cash flow. With the HUD FMR set at $2000, landlords can expect consistent rental income from voucher holders, provided they maintain their properties to meet the program's standards. This predictability is beneficial for small-portfolio investors seeking stable returns without the need for significant capital improvements or marketing efforts.
Data Sources: FMR data from HUD (2027).
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.