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 | $2,810 |
| 1 Bedroom | $2,900 |
| 2 Bedrooms | $3,460 |
| 3 Bedrooms | $4,120 |
| 4 Bedrooms | $4,550 |
| 5 Bedrooms | $5,278 |
| 6 Bedrooms | $5,911 |
| 7 Bedrooms | $6,384 |
| 8 Bedrooms | $6,703 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,460 | $618,325 | 0.56% | F |
| 3BR | $4,120 | $747,478 | 0.55% | F |
| 4BR | $4,550 | $964,362 | 0.47% | F |
| 5BR | $5,278 | $980,127 | 0.54% | F |
U.S. Census Bureau data (2024)
ZIP code 01887 is situated in the town of Wilmington, Massachusetts, a part of the Greater Boston Area. This neighborhood is characterized by a relatively low rental population at 11.9%, indicating that it is predominantly owner-occupied. The area boasts a high median household income of $168,152, reflecting a prosperous community where residents can afford to purchase homes valued at a median of $777,443.
The economic landscape for landlords and small-portfolio investors is favorable due to the Federal Market Rent (FMR) for ZIP 01887 being set at $3390 for fiscal year 2024. In comparison, the market rent as measured by Zillow's Observed Rental Index (ZORI) stands at $3,171. This means that landlords participating in the Section 8 program can expect higher rents compared to the local market average, providing a financial buffer against potential maintenance and vacancy costs.
Given these figures, ZIP 01887 would be well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the guaranteed rental income through the Section 8 program, which exceeds the market rent, offers stability and predictable cash flow. Meanwhile, hands-on investors can leverage the high median income and home values to target renovations or upgrades that could command premium rents above the FMR, thus maximizing their investment returns.
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.