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 | $1,800 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,580 |
| 3 Bedrooms | $3,120 |
| 4 Bedrooms | $3,390 |
| 5 Bedrooms | $3,932 |
| 6 Bedrooms | $4,404 |
| 7 Bedrooms | $4,756 |
| 8 Bedrooms | $4,994 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,580 | $600,948 | 0.43% | F |
| 3BR | $3,120 | $711,928 | 0.44% | F |
| 4BR | $3,390 | $957,005 | 0.35% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 01862, Billerica, MA, on the yield and stability axes reveals a moderate cash flow potential with relatively stable conditions. The Fair Market Rent (FMR) for ZIP 01862 in fiscal year 2024 is set at $2,200, which is notably lower than the market rent of $2,671. This suggests that while there is room for modest profit margins, the primary driver of rental income will be closer to the FMR rather than the higher market rates.
Comparing the FMR to the median home value of $722,118 indicates a yield ratio of approximately 0.3%. This is not particularly high, suggesting that Billerica does not favor a high-yield, low-stability "flip-style" market. Instead, it leans towards a steady-cashflow zone where long-term investment strategies are more likely to succeed. The income level of residents, at an average of $138,571, supports the ability to pay rents close to the FMR, enhancing the stability of rental income.
Regarding stability, the 28.4% rental rate shows a significant portion of the population is not homeowners, indicating a stable demand for rental properties. However, the lack of data on the number of days on market (DOM) makes it difficult to assess how quickly rental units can be filled or turned over. This absence of information slightly reduces the confidence in predicting stability but does not significantly alter the overall assessment.
In summary, ZIP 01862 offers a balanced scenario for landlords and small-portfolio investors. It is neither a high-yield, low-stability market nor a purely steady-cashflow zone. The key figures driving this call are the FMR of $2,200, the median home value of $722,118, and the average household income of $138,571, all of which suggest a moderate-yield, moderately stable environment.
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.