Section 8 Fair Market Rent (FMR) for ZIP 01863 - 2027

Location: Lowell, MA | Metro: Lowell, MA HUD Metro FMR Area

Investment Score for ZIP 01863

Monthly Rent (2BR)

$2,340

Median Price (2BR)

$445,575

1% Rule

0.53%

Annual Yield

6.3%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,630
1 Bedroom	$1,800
2 Bedrooms	$2,340
3 Bedrooms	$2,830
4 Bedrooms	$3,080
5 Bedrooms	$3,573
6 Bedrooms	$4,002
7 Bedrooms	$4,322
8 Bedrooms	$4,538

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,340	$445,575	0.53%	F
3BR	$2,830	$646,837	0.44%	F
4BR	$3,080	$737,224	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

9,796

Median Household Income

$144,875

Housing Units

3,615

Renter Percentage

18.2%

Occupancy Rate

98.8%

Renter Occupied

650

The ZIP code 01863, located in Chelmsford, Massachusetts, offers a blend of suburban charm and proximity to urban amenities, making it an attractive location for both residents and investors. The area benefits from strong economic indicators, high median incomes, and a growing rental market.

The Fair Market Rent (FMR) for ZIP 01863 is set at $1980 for fiscal year 2024, which provides a baseline for rental pricing that landlords should consider.
The actual market rent, as measured by the Zillow Observed Rent Index (ZORI), stands at $2,537, indicating that there is a premium over the FMR, reflecting the true demand in the local rental market.
The median home value in the area is $551,937, suggesting a relatively affluent community where property values can be expected to hold steady or appreciate.
Renters make up 18.2% of the housing market, showing a significant portion of the population prefers renting, which is favorable for landlords looking to maintain occupancy rates.
The median household income in ZIP 01863 is $144,875, which is substantially higher than the national average, indicating a robust local economy capable of supporting higher rents.
The Days on Market (DOM) data is currently unavailable, but given the strong rental market, it's likely that properties listed for rent are attracting interest quickly.

Investors in Chelmsford, MA can expect solid returns on their investment due to the healthy rental market and high median incomes. The gap between the FMR and ZORI suggests that there is room for landlords to price competitively while still maintaining profitability. The 18.2% renter share indicates a stable tenant base, reducing the risk of vacancy. With median incomes significantly above the national average, tenants are likely to have the financial capacity to meet rent obligations, further securing the investment. While specific DOM data would provide additional insight into how quickly units are leased, the overall economic health and demand suggest a favorable environment for rental properties.

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.