Location: Lawrence, 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 | $318,522 | 0.7% | D |
| 2BR | $2,650 | $484,424 | 0.55% | F |
| 3BR | $3,180 | $660,015 | 0.48% | F |
| 4BR | $3,510 | $821,314 | 0.43% | F |
| 5BR | $4,072 | $906,782 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 real-estate analysis for ZIP code 01913, located in Amesbury, MA, reveals a critical gap between the Fair Market Rent (FMR) and the market rent as measured by Zillow's Observed Rent Index (ZORI). For fiscal year 2024, the FMR stands at $2380, while the ZORI indicates a market rent of $2445. This represents a gap of $65, or approximately 2.73%, between the two figures.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors must understand the implications of accepting housing vouchers. The cost of housing voucher tenants below open-market rates means that landlords will receive a fixed payment from the government, which is less than what they could potentially charge on the open market. In Amesbury, where the median home value is $619,596 and the median income is $103,554, the decision to participate in the Section 8 program should be carefully weighed against the potential rental income loss.
A key consideration is the percentage of renters in Amesbury, which is 31.4%. This suggests that a significant portion of the population relies on rental housing, including those who may benefit from the Section 8 program. Landlords who accept Section 8 vouchers can expect a stable source of income, but it comes at the cost of foregoing the additional $65 per month that could be charged to non-voucher tenants. This discrepancy can affect overall yields and must be factored into investment strategies.
To illustrate the financial impact, let's assume a landlord has a property with four units. If all units were rented at market rates, the total monthly rent would be $9780 ($2445 x 4). However, if these units were instead rented to voucher tenants under the FMR, the landlord would only receive $9520 ($2380 x 4), resulting in a total monthly shortfall of $260. Over the course of a year, this translates to a loss of $3120, which can significantly influence the profitability of a rental portfolio.
In conclusion, while the gap between FMR and market rent in ZIP 01913 is relatively small at $65, the decision to participate in the Section 8 program requires careful consideration of the financial trade-offs involved. Landlords should evaluate their investment goals and the local rental market dynamics before deciding whether to accept housing vouchers.
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.