Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH 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 | $2,150 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,230 | $393,147 | 0.57% | F |
| 2BR | $2,650 | $631,116 | 0.42% | F |
| 3BR | $3,180 | $817,165 | 0.39% | F |
| 4BR | $3,510 | $977,371 | 0.36% | F |
| 5BR | $4,072 | $1,086,987 | 0.37% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP code 01880, Wakefield, MA, are significant. Tenant turnover can be a challenge, as the market rent stands at $2,697 while the Fair Market Rent (FMR) for FY 2024 is set at $2,430. This discrepancy can lead to higher tenant churn rates, affecting cash flow stability. Additionally, the vacancy risk is notable with an average Days on Market (DOM) of just 7 days. While this suggests strong rental demand, it also implies that if a property becomes vacant, it may take longer than expected to fill, especially under the constraints of the Section 8 program.
The deferred maintenance exposure is another critical factor. With a typical home value of $814,840 and a median household income of $134,306, there is a substantial gap between the cost of upkeep and the financial capacity of most residents. Landlords must be prepared for the possibility of higher-than-average maintenance costs, as tenants might not have the means to keep up with repairs and upgrades.
However, these risks are balanced by the high renter share in the area, which stands at 29.3%. A large proportion of renters typically translates into a robust demand for housing vouchers, making Section 8 tenancy a viable option for many. The dense rental market in Wakefield can provide a steady stream of applications, reducing the likelihood of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.