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 |
|---|---|---|---|---|
| 1BR | $2,300 | $304,241 | 0.76% | D |
| 2BR | $3,010 | $436,153 | 0.69% | D |
| 3BR | $3,590 | $728,862 | 0.49% | F |
| 4BR | $3,960 | $1,072,138 | 0.37% | F |
| 5BR | $4,594 | $1,266,239 | 0.36% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $2,580 for ZIP 01845 in fiscal year 2024 will sufficiently cover the mortgage on a home priced at $806,763. To evaluate this, it's important to consider the average home price in the area. According to recent listings, the median home value in ZIP 01845 is around $670,000, which is slightly lower than the hypothetical home price mentioned. This suggests that while the FMR might not fully cover the mortgage on a particularly expensive property, it is still competitive with the local market.
The rental vacancy rate of 30.2% could be seen as an indicator of low demand among renters. However, the data does not provide a direct comparison with historical trends or other ZIP codes. In general, a vacancy rate under 35% can still be considered healthy, but it's crucial to monitor trends over time. If the rate continues to rise, it could signal a weakening market. Conversely, if it stabilizes or decreases, it suggests strong demand. The current figure does not definitively indicate a problem, but it requires attention.
The third concern is whether housing vouchers will keep pace with the market rents, which are currently at $2,729. While specific data on voucher trends in ZIP 01845 is not readily available, it's known that the U.S. Department of Housing and Urban Development (HUD) periodically adjusts voucher amounts based on local market conditions. Given that the FMR is slightly below the market rent, it indicates that HUD aims to ensure vouchers remain relevant to the local cost of living. However, without precise data on voucher adjustments, it's challenging to predict their exact impact on covering market rents.
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.