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 | $302,823 | 0.74% | D |
| 2BR | $2,650 | $477,062 | 0.56% | F |
| 3BR | $3,180 | $587,362 | 0.54% | F |
| 4BR | $3,510 | $631,425 | 0.56% | F |
| 5BR | $4,072 | $715,459 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 01905, located in Lynn, Massachusetts, stands out within Essex County due to its unique demographic and economic characteristics. With a population of 28,221 residents, it has a significant rental market where 48.3% of the population rents their homes. The median income in this area is $84,333, which is relatively modest compared to other parts of Massachusetts. However, the median home value is notably high at $575,152, indicating that homeownership in this ZIP code comes with a substantial financial commitment.
For landlords and small-portfolio investors, understanding the dynamics of housing assistance programs such as Section 8 is crucial. In ZIP 01905, the Fair Market Rent (FMR) for a one-bedroom apartment in fiscal year 2024 is set at $2,380. This figure is slightly below the market rent, which is measured by ZORI (Zillow Observed Rent Index) at $2,468. This difference suggests that landlords participating in the Section 8 program might face a slight shortfall in covering their costs based solely on the voucher amount. However, the gap is minimal, and the program remains a viable option for securing tenants in this area.
Considering the data signature of ZIP 01905, the environment can be characterized as stable. Despite the high median home values, the rental market appears to be functioning well, with a significant portion of the population choosing to rent rather than buy. The close alignment between FMR and ZORI indicates a balanced market where the government's assessment of fair rents closely matches actual market conditions. For investors, this stability means that while returns might not be exceptionally high, they can expect consistent performance without the volatility often seen in transitional markets.
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.