Section 8 Fair Market Rent (FMR) for ZIP 01867 - 2027

Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area

Investment Score for ZIP 01867

F
Monthly Rent (2BR)
$2,790
Median Price (2BR)
$671,865
1% Rule
0.42%
Annual Yield
4.98%

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$2,260
1 Bedroom$2,340
2 Bedrooms$2,790
3 Bedrooms$3,320
4 Bedrooms$3,670
5 Bedrooms$4,257
6 Bedrooms$4,768
7 Bedrooms$5,149
8 Bedrooms$5,406

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $2,340 $451,589 0.52% F
2BR $2,790 $671,865 0.42% F
3BR $3,320 $901,593 0.37% F
4BR $3,670 $1,145,874 0.32% F
5BR $4,257 $1,268,460 0.34% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
25,612
Median Household Income
$165,912
Housing Units
9,951
Renter Percentage
17.6%
Occupancy Rate
97.9%
Renter Occupied
1,712

The ZIP code 01867, located in Reading, MA, has a population of 25,612 residents, with 17.6% being renters. This indicates that the area is primarily homeowner-dominated, rather than a renter-heavy ZIP. The scarcity of renters means that the demand for Section 8 vouchers is likely to be less intense compared to areas with higher percentages of renters.

The median household income in Reading, MA is $165,912, which is significantly higher than the Fair Market Rent (FMR) threshold for FY 2024, set at $2470 per month. Given the market rent of $3,309, typical rent consumes approximately 19.9% of the local median income. This suggests that while the area is not heavily populated with renters, those who do rent are generally well above the low-income threshold that qualifies for Section 8 assistance.

In comparing the market rent to the FMR, it's evident that the rents in Reading, MA are substantially higher than the government-set benchmark. The difference between the FMR ($2470) and the market rent ($3,309) highlights that tenants receiving Section 8 vouchers would struggle to find units within their voucher limit without additional subsidies or special allowances.

A landlord in Reading, MA can expect tenants who are either receiving substantial rental assistance through Section 8 vouchers or are supplementing their voucher amount with personal funds. These tenants will likely be working individuals or families who, despite having incomes below the median, still benefit from living in a relatively affluent area. Landlords should prepare for a tenant pool that requires units priced closer to the FMR level to be fully covered by vouchers, or they must consider accepting partial payments from vouchers and collecting the remainder directly from tenants.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.