Location: Lowell, MA | Metro: Lowell, MA 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 | $1,560 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,710 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,240 | $325,782 | 0.69% | D |
| 3BR | $2,710 | $478,432 | 0.57% | F |
| 4BR | $2,940 | $524,795 | 0.56% | F |
| 5BR | $3,410 | $594,433 | 0.57% | F |
U.S. Census Bureau data (2024)
A landlord considering ZIP 01850 (Lowell, MA) for a Section 8 investment must follow a structured decision-making process based on financial feasibility and market demand.
Step 1: Evaluate if the Fair Market Rent (FMR) of $1770 can cover the debt service on a property valued at $445,160. To determine this, calculate the annual rent revenue and compare it against the total annual debt service, including principal, interest, taxes, and insurance. Assuming a conservative estimate of 10% property expenses, the net annual income would be $1770 * 12 months - ($445,160 * 10%) = $21,240 - $44,516 = -$23,276. This indicates that the FMR does not clear the debt service on a property of this value, leading to a No.
Step 2: Assess whether the market rent of $1,707 is above, at, or below the FMR. Here, the market rent is slightly below the FMR, indicating that properties might struggle to attract tenants willing to pay the higher FMR required by Section 8. This further supports the initial No decision.
Step 3: Examine the rental demand, which stands at 50.7% of the population being renters, but with a missing Days on Market (DOM) figure. Despite a significant portion of the population renting, the lack of data on DOM suggests uncertainty in the speed of finding tenants. However, even if we assume strong demand, the previous steps indicate financial unfeasibility.
The decision tree clearly points towards No. The FMR of $1770 does not sufficiently cover the debt service on a property valued at $445,160, and the market rent of $1,707 is below the FMR, suggesting potential difficulties in attracting tenants. Even though 50.7% of the population are renters, the financial metrics do not support a viable Section 8 investment in ZIP 01850.
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.