Location: Lawrence, MA | Metro: Lawrence, 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 | $1,840 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,310 |
| 3 Bedrooms | $2,780 |
| 4 Bedrooms | $3,060 |
| 5 Bedrooms | $3,550 |
| 6 Bedrooms | $3,976 |
| 7 Bedrooms | $4,294 |
| 8 Bedrooms | $4,509 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,310 | $514,523 | 0.45% | F |
| 3BR | $2,780 | $660,542 | 0.42% | F |
| 4BR | $3,060 | $850,081 | 0.36% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 01860, Merrimac, MA, for fiscal year 2024 is set at $2,380. This figure represents the maximum amount that a landlord can charge for a unit under the Section 8 program. In contrast, the market rent based on Census ACS data is significantly lower at $1,352. This indicates that voucher tenants will generally cashflow positively at the HUD FMR rate.
To further analyze the investment potential, consider the median home value in the area, which stands at $654,898. Using the HUD FMR of $2,380, we can calculate a rent-to-price ratio of approximately 0.36%, suggesting that rental income alone does not justify the purchase price of a median home in this ZIP code. However, for those interested in renting out their properties exclusively to Section 8 tenants, the higher rent compared to market rates ensures a positive cash flow scenario.
The dynamics between rental and buying markets are important to understand, but with the median Days on Market (DOM) and the percentage of homes that experienced price cuts being not available, it's difficult to provide a precise comparison. Nonetheless, given the significant gap between the HUD FMR and the market rent, the primary strength for Section 8 investors lies in the cashflow potential. The higher rent allowed under the voucher program means that landlords can expect to cover their mortgage payments, maintenance costs, and other expenses comfortably, even without considering property appreciation or market stability.
The strongest investor angle in ZIP 01860 is undoubtedly cashflow, due to the substantial difference between the HUD FMR and the actual market rent.
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.