Section 8 Fair Market Rent (FMR) for ZIP 01889 - 2027
Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| 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 |
To determine if a landlord should invest in ZIP code 01889 (Unknown, MA) for Section 8 properties, follow these steps:
Step 1: Can the Fair Market Rent (FMR) of $2870 cover the debt service?
- No: If the FMR cannot clear the debt service on a property, purchasing in this area is not advisable. Debt service includes mortgage payments, property taxes, insurance, and other expenses. Without knowing the exact cost of debt service, landlords must ensure that $2870 is sufficient to meet all financial obligations.
Step 2: How does the market rent compare to the FMR?
- Above: If the market rent exceeds the FMR, landlords will face challenges in renting to Section 8 tenants as the government pays only up to the FMR. This means they would need to find non-Section 8 tenants willing to pay the higher market rate, which might be difficult.
- At: When the market rent aligns with the FMR, landlords can confidently expect to receive the full rent amount from Section 8 vouchers, making it a viable option.
- Below: If the market rent is below the FMR, landlords could potentially overcharge Section 8 tenants, but this is illegal. They must set rents at or below the FMR, so this scenario aligns well with Section 8 investment.
Step 3: Is there enough demand for rental properties?
- It Depends: With unknown percentages of renters and days on the market (DOM), it's challenging to gauge demand accurately. However, landlords should consider the local job market, population growth, and housing needs. A strong local economy and growing population generally indicate higher demand for rentals.
The decision to invest in ZIP 01889 for Section 8 properties hinges on the ability of the FMR to cover costs, the alignment of market rents with the FMR, and the overall demand for rental units. Landlords must evaluate these factors carefully before proceeding with any purchase.
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.