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 | $2,440 |
| 1 Bedroom | $2,520 |
| 2 Bedrooms | $3,010 |
| 3 Bedrooms | $3,590 |
| 4 Bedrooms | $3,960 |
| 5 Bedrooms | $4,594 |
| 6 Bedrooms | $5,145 |
| 7 Bedrooms | $5,557 |
| 8 Bedrooms | $5,835 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,520 | $385,354 | 0.65% | D |
| 2BR | $3,010 | $578,000 | 0.52% | F |
| 3BR | $3,590 | $692,279 | 0.52% | F |
| 4BR | $3,960 | $807,029 | 0.49% | F |
| 5BR | $4,594 | $905,475 | 0.51% | F |
U.S. Census Bureau data (2024)
The median income in Saugus, Massachusetts (ZIP 01906) stands at $101,539, which places it above the national average. However, when considering the market rate for rent, which is $2,867 per month (ZORI), the financial landscape becomes more nuanced. This figure represents the typical rental cost for properties in the area, indicating that the majority of residents pay around this amount.
In contrast, the Fair Market Rent (FMR) for the zip code for fiscal year 2024, as determined by HUD, is set at $2,380. This is the standard payment amount for Section 8 vouchers, which means that families participating in the program receive assistance to cover up to this amount. The difference between the ZORI ($2,867) and the FMR ($2,380) highlights a significant affordability gap for low-income households without voucher support.
Saugus has a population of 28,773, with 28.5% of the residents being renters. This suggests a notable segment of the local housing market is comprised of individuals or families who must find suitable accommodation within their budget. Given the disparity between the market rate and the voucher payment, landlords will face stiff competition when targeting tenants who can afford the full market rate. Conversely, those willing to accept Section 8 vouchers may have an easier time filling vacancies but will need to ensure they meet the requirements for participation in the program.
The takeaway for landlords is clear: while accepting Section 8 vouchers can provide a steady stream of tenants, it comes with the trade-off of receiving lower rent payments compared to the market rate. Landlords should weigh the benefits of guaranteed income against the potential challenges of managing properties under the voucher program. For those focused on cash-paying tenants, the strategy requires positioning properties competitively within the higher end of the rental spectrum, attracting the upper echelon of Saugus' economic strata.
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.