Section 8 Fair Market Rent (FMR) for ZIP 01876 - 2027

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

Investment Score for ZIP 01876

Monthly Rent (2BR)

$3,150

Median Price (2BR)

$513,185

1% Rule

0.61%

Annual Yield

7.37%

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	$2,190
1 Bedroom	$2,420
2 Bedrooms	$3,150
3 Bedrooms	$3,800
4 Bedrooms	$4,140
5 Bedrooms	$4,802
6 Bedrooms	$5,378
7 Bedrooms	$5,808
8 Bedrooms	$6,098

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
1BR	$2,420	$454,932	0.53%	F
2BR	$3,150	$513,185	0.61%	D
3BR	$3,800	$676,809	0.56%	F
4BR	$4,140	$809,183	0.51%	F
5BR	$4,802	$883,500	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

31,004

Median Household Income

$130,204

Housing Units

11,800

Renter Percentage

15.3%

Occupancy Rate

97.8%

Renter Occupied

1,761

A landlord considering investing in ZIP code 01876 (Tewksbury, MA) for Section 8 properties must follow a structured decision-making process. The first question is whether the Fair Market Rent (FMR) of $2,980 can cover the debt service on a property valued at $674,336.

If the answer is yes, proceed to the next question. An FMR of $2,980 suggests that the rental income is sufficient to meet the financial obligations associated with a property of this value, assuming typical financing terms.
If the answer is no, do not invest in this area. The rental income would not be adequate to support the debt service, leading to financial losses.

The second question is whether the market rent, measured by the Zillow Observed Rent Index (ZORI) at $2,609, is above, at, or below the FMR. This comparison helps determine the competitiveness of Section 8 rents in the local market.

If market rent is below FMR, then Section 8 rents are competitive. This scenario indicates that the government's rent subsidy is higher than what the market demands, making Section 8 properties attractive to potential tenants.
If market rent is above FMR, then Section 8 rents are less competitive. Landlords might face challenges in filling vacancies, as tenants may prefer non-subsidized units offering better value.

The third consideration is the demand for rental properties. In Tewksbury, MA, 15.3% of residents are renters, and the average days on market (DOM) for rental listings is 19 days.

If the demand is high, indicated by a low DOM, then there is likely enough demand to support Section 8 investments. A 19-day DOM suggests that rental units are filling quickly, which is favorable.
If the demand is low, indicated by a high DOM, then there may not be enough demand to justify an investment. However, the current DOM of 19 days does not suggest low demand.

In summary, if the FMR of $2,980 covers the debt service on a property worth $674,336, and market rent is below this FMR, and the DOM remains low at 19 days, then the answer is yes, you should buy here for Section 8. The data supports a robust rental market where Section 8 subsidies are competitive and demand is strong enough to fill vacancies promptly.

If any of these conditions are not met, the decision becomes more complex. It could depend on other factors such as the specific location within the ZIP code, the condition of the property, and the availability of Section 8 vouchers in the area.

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.