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 | $1,760 |
| 2 Bedrooms | $2,290 |
| 3 Bedrooms | $2,770 |
| 4 Bedrooms | $3,010 |
| 5 Bedrooms | $3,492 |
| 6 Bedrooms | $3,911 |
| 7 Bedrooms | $4,224 |
| 8 Bedrooms | $4,435 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,760 | $255,973 | 0.69% | D |
| 2BR | $2,290 | $341,132 | 0.67% | D |
| 3BR | $2,770 | $553,226 | 0.5% | F |
| 4BR | $3,010 | $565,919 | 0.53% | F |
| 5BR | $3,492 | $623,288 | 0.56% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 01854, located in Lowell, Massachusetts, within Middlesex County, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment in FY 2024, the SAFMR is set at $1880. This figure represents the maximum amount that the housing authority will pay on behalf of a tenant who qualifies for the Section 8 program.
Local market rents, however, run higher at $2400 according to ZORI (Zillow Observed Rent Index). This discrepancy creates an interesting scenario for landlords. To understand the actual payment a landlord receives, it's essential to factor in the tenant's portion of the rent and any utility allowances.
The tenant's portion is typically based on their income, with the expectation that they contribute 30% of their adjusted income towards rent. If the tenant's adjusted income is $1600 per month, their contribution would be $480 ($1600 * 0.30).
In addition to the SAFMR, landlords also receive utility allowances. These allowances vary but generally cover a portion of heating, cooling, water, and electricity costs. For ZIP 01854, let's assume the utility allowance is $300 per month. This brings the total monthly reimbursement from the housing authority to $2180 ($1880 + $300).
To calculate the final amount received by the landlord, add the tenant's contribution to the housing authority's reimbursement. In this case, it would be $2660 ($2180 + $480).
Given the local market rent of $2400, this arrangement leaves a surplus for the landlord. The surplus is calculated as the difference between the final reimbursement and the market rent. Here, the landlord would receive $260 more than the ZORI ($2660 - $2400).
This analysis provides a clear picture of how Section 8 works in ZIP 01854. Landlords can expect a reimbursement that exceeds the local market rent by $260 for a two-bedroom unit, making participation in the program financially beneficial despite the administrative overhead.
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.