Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,560 |
| 1 Bedroom | $2,640 |
| 2 Bedrooms | $3,160 |
| 3 Bedrooms | $3,770 |
| 4 Bedrooms | $4,150 |
| 5 Bedrooms | $4,814 |
| 6 Bedrooms | $5,392 |
| 7 Bedrooms | $5,823 |
| 8 Bedrooms | $6,114 |
U.S. Census Bureau data (2024)
ZIP 01864, located within the Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area, can serve as a cash-flow anchor in a Section 8 portfolio strategy. The Fair Market Rent (FMR) for FY 2024 is set at $2730, which is notably higher than the market rent of $2427. This creates a positive spread of $303 per unit, ensuring that landlords receive a consistent and slightly above-market rental income when participating in the Section 8 program.
The median income in ZIP 01864 is $147,768, indicating a relatively affluent area. Despite this, the high FMR reflects the strong demand for subsidized housing even in wealthier neighborhoods. Landlords should expect steady occupancy rates and timely rent payments due to the robust financial backing of the Section 8 vouchers. Furthermore, the lack of data on median home values and days on market (DOM) suggests that the primary focus for investors in this ZIP code should be on rental properties rather than flipping homes.
The 0.1% price-cut share highlights that there is minimal need for aggressive pricing to attract tenants, further supporting the idea that this ZIP code is suitable for a cash-flow anchor strategy. With a 15.7% renter share, the market remains competitive but not overly saturated with rental options, providing a stable environment for long-term investment.
In summary, ZIP 01864 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The favorable spread between the FMR and market rent, combined with the area's economic stability, ensures reliable returns for landlords and small-portfolio investors.
Data Sources: FMR data from HUD (2027). 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.