Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,470 |
| 1 Bedroom | $2,550 |
| 2 Bedrooms | $3,050 |
| 3 Bedrooms | $3,630 |
| 4 Bedrooms | $4,010 |
| 5 Bedrooms | $4,652 |
| 6 Bedrooms | $5,210 |
| 7 Bedrooms | $5,627 |
| 8 Bedrooms | $5,908 |
The economics of Section 8 in ZIP code 01888, located within the Boston-Cambridge-Quincy County area, are straightforward when understood correctly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $2870. This figure represents the maximum amount that the housing authority will pay on behalf of a tenant who uses a Section 8 voucher.
A voucher payment is composed of two parts: the tenant's contribution and the housing authority's subsidy. The tenant's contribution is typically 30% of their adjusted income, which can vary widely based on individual financial circumstances. For simplicity, if we assume an average adjusted income of $1913 (30% of which is $574), this would be the tenant's monthly rent contribution. The housing authority then pays the difference between the SAFMR and the tenant's contribution.
In addition to the base rent, there are utility allowances. These allowances cover a portion of the tenant's utility costs and are separate from the rent. Utility allowances can vary but are generally around $300-$400 per month for a two-bedroom unit. Therefore, if we take a conservative estimate of $350 for utility allowances, this amount is also covered by the housing authority.
To calculate the total reimbursement a landlord might receive, add the tenant's contribution and the utility allowance to the housing authority's subsidy. Using our example figures, if the tenant contributes $574 and the utility allowance is $350, the housing authority would cover the remaining $1946 ($2870 - $574) of the rent. Thus, the total reimbursement to the landlord would be $2870 ($574 + $350 + $1946).
The typical reimbursement gap or surplus arises when comparing the SAFMR to the actual market rent. However, since the local market rent data for ZIP 01888 is currently unavailable, it's impossible to determine whether there is a surplus or a shortfall in the voucher payment relative to the market rates. To make informed decisions, landlords should monitor local rental listings to gauge where the market stands in relation to the SAFMR.
Landlords must remember that while the SAFMR provides a benchmark, the actual amount received can fluctuate based on the tenant's income. It's crucial to verify the tenant's eligibility and the specific terms of their voucher before agreeing to participate in the program.
Data Sources: FMR data from HUD (2027).
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.