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 | $2,130 |
| 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 | $321,723 | 0.69% | D |
| 2BR | $2,650 | $546,829 | 0.48% | F |
| 3BR | $3,180 | $630,540 | 0.5% | F |
| 4BR | $3,510 | $702,695 | 0.5% | F |
| 5BR | $4,072 | $774,726 | 0.53% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 01904 in Lynn, Massachusetts, hinges on a careful analysis of yield and stability metrics. The Fair Market Rent (FMR) for ZIP 01904 in fiscal year 2024 is set at $2,380, significantly higher than the current market rent of $1,822. This discrepancy suggests a potential for high rental yields if properties can be rented at or near the FMR.
On the stability axis, the data indicates that only 17.6% of residents are renters, which is a low percentage compared to typical rental markets. This figure implies less demand for rental properties, potentially leading to lower occupancy rates and increased vacancy periods. Additionally, the median household income of $99,614 is relatively modest, which could affect tenants' ability to pay higher rents consistently.
The median home value in ZIP 01904 is $625,681, which is high and might indicate a strong local economy capable of supporting higher rents. However, the lack of data on days on market (DOM) makes it challenging to assess how quickly rental properties can be filled. In the absence of this information, we must rely heavily on the other metrics provided.
Given these figures, ZIP 01904 leans towards being a high-yield but low-stability market. The potential for significant rental income exists due to the disparity between the FMR and market rent, but the low percentage of renters and modest median income suggest that maintaining consistent cash flow could be difficult. Landlords and small-portfolio investors should consider these factors carefully before entering the market, possibly focusing on strategies that maximize short-term gains while preparing for potential long-term challenges.
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.