Location: Lowell, 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 | $2,360 |
| 1 Bedroom | $2,600 |
| 2 Bedrooms | $3,390 |
| 3 Bedrooms | $4,090 |
| 4 Bedrooms | $4,460 |
| 5 Bedrooms | $5,174 |
| 6 Bedrooms | $5,795 |
| 7 Bedrooms | $6,259 |
| 8 Bedrooms | $6,572 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,600 | $406,276 | 0.64% | D |
| 2BR | $3,390 | $566,918 | 0.6% | F |
| 3BR | $4,090 | $733,782 | 0.56% | F |
| 4BR | $4,460 | $1,053,430 | 0.42% | F |
| 5BR | $5,174 | $1,177,434 | 0.44% | F |
U.S. Census Bureau data (2024)
The ZIP code 01886, located in Westford, Massachusetts, presents an interesting scenario for both renters and landlords. The median household income here stands at $187,198, which is significantly higher than the national average. However, the question remains whether this income level adequately covers the market rate rent, known as the ZORI (Zillow Observed Rent Index), which is set at $3,008 per month.
To determine affordability, let’s consider the financial implications. A household earning the median income would have an annual rent budget of approximately $22,464 if they were to allocate 12% of their income towards housing, a common benchmark. This monthly figure comes out to $1,872, which is notably below the market rate of $3,008. Thus, it becomes evident that even with a high median income, the cost of renting in Westford exceeds a reasonable portion of what most households can afford.
When comparing the market rate to the federal voucher payment standard, we see another layer of complexity. For fiscal year 2024, the Fair Market Rent (FMR) for ZIP 01886 is $2,990. This means that a household receiving a Section 8 voucher could potentially pay up to this amount, still falling short of the market rate but closer than the typical 12% allocation.
Given that only 14.1% of the 24,690 population are renters, competition among landlords in this area is relatively low. However, the affordability gap between the median income and the ZORI suggests that many potential tenants might find the market rate unattainable without assistance. Therefore, landlords who accept Section 8 vouchers could tap into a segment of the market that is otherwise underserved, providing a stable source of income.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While cash-paying tenants might offer higher immediate returns, accepting Section 8 vouchers can provide a consistent stream of rental income from a group of tenants who would otherwise struggle to find suitable housing in Westford. This strategy not only supports affordable housing but also ensures a reliable tenant base in a competitive yet niche rental market.
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.