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 | $1,830 |
| 1 Bedroom | $2,020 |
| 2 Bedrooms | $2,630 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,460 |
| 5 Bedrooms | $4,014 |
| 6 Bedrooms | $4,496 |
| 7 Bedrooms | $4,856 |
| 8 Bedrooms | $5,099 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,020 | $283,757 | 0.71% | D |
| 2BR | $2,630 | $450,222 | 0.58% | F |
| 3BR | $3,180 | $685,202 | 0.46% | F |
| 4BR | $3,460 | $808,621 | 0.43% | F |
| 5BR | $4,014 | $829,682 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 01879 (Tyngsboro, MA, Middlesex County, part of the Lowell, MA HUD Metro FMR Area) reveals a significant gap between the HUD Fair Market Rent (FMR) and the market rent. The HUD FMR for this area stands at $2,070 per month for FY 2024, whereas the market rent, as indicated by Zillow's ZORI (Zestimate Owner Occupied Rents Index), is $3,350. This disparity suggests that landlords accepting Section 8 vouchers will experience negative cash flow unless they manage costs exceptionally well or have premium units commanding higher rents.
To further understand the investment landscape, consider the median home value in Tyngsboro, which is $650,865. Using this figure, we can calculate the rent-to-price ratio. With a monthly rent of $2,070, the annual rent would be approximately $24,840, leading to a rent-to-price ratio of about 3.8%. This ratio is lower than what many investors might find attractive, indicating that rental income alone may not justify the purchase price of a property in this area.
The dynamics of days on market (DOM) and the percentage of price cuts are not applicable in this scenario as these metrics are typically used for sales rather than rentals. However, given the high median home values and the relatively low HUD FMR, it's evident that the primary challenge for investors is achieving positive cash flow from voucher tenants. To overcome this, landlords should focus on reducing operating expenses, increasing occupancy rates, or securing higher rents through premium unit offerings.
The strongest investor angle in Tyngsboro's Section 8 market is likely to be stability. Despite the initial cash flow challenges, the consistent nature of government-backed rental payments can provide a reliable income stream, making it an appealing option for those prioritizing steady returns over short-term profitability.
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.