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 | $1,590 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,280 |
| 3 Bedrooms | $2,750 |
| 4 Bedrooms | $3,000 |
| 5 Bedrooms | $3,480 |
| 6 Bedrooms | $3,898 |
| 7 Bedrooms | $4,210 |
| 8 Bedrooms | $4,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,750 | $251,273 | 0.7% | D |
| 2BR | $2,280 | $367,452 | 0.62% | D |
| 3BR | $2,750 | $542,321 | 0.51% | F |
| 4BR | $3,000 | $622,831 | 0.48% | F |
| 5BR | $3,480 | $750,351 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 01852, located in Lowell, MA, is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 01852 in fiscal year 2024 is set at $1830, while the market rent, measured by ZORI (Zillow Observed Rent Index), stands at $2216. This creates a gap of $386, which represents a 21.1% difference between what the government deems fair and what the market demands.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors must understand the implications of housing voucher tenants at rates below the open-market level. In Lowell, where 55.7% of residents are renters, the median home value is $467,784 and the median income is $80,906. These figures indicate a mixed-income area with a significant portion of the population relying on rental housing.
Housing voucher tenants can be seen as a stable source of income, but they come with costs that must be accounted for. The cost of accepting Section 8 vouchers includes administrative overheads, compliance with HUD regulations, and potential maintenance issues due to the demographic profile of voucher recipients. Despite these costs, the gap between FMR and market rent suggests that landlords could still achieve a reasonable yield by optimizing their property management practices and maintaining high standards of maintenance and security.
To summarize, the $386 gap, or 21.1%, between the FMR and market rent in ZIP 01852 presents both opportunities and challenges for landlords. While the lower FMR might seem disadvantageous, the stability provided by government-backed vouchers can ensure consistent cash flow, making it a viable strategy in a market where 55.7% of the population are renters and median incomes are relatively low at $80,906.
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.