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 |
|---|---|---|---|---|
| 2BR | $2,650 | $864,942 | 0.31% | F |
| 3BR | $3,180 | $814,946 | 0.39% | F |
| 4BR | $3,510 | $984,611 | 0.36% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Newbury, MA (ZIP 01922) for Section 8 properties might raise several concerns. Here are three key objections and their corresponding analyses based on available data.
Objection 1: Will Fair Market Rent (FMR) of $2380 cover the mortgage on a $862,447 home?
The FMR of $2380 in ZIP 01922 for fiscal year 2024 may not sufficiently cover the mortgage payments on a home priced at $862,447. To provide a clearer perspective, let's calculate the monthly mortgage payment assuming a typical 30-year fixed-rate mortgage at an interest rate of 4%. The monthly mortgage payment would be approximately $4100. Clearly, the FMR does not cover the mortgage payment, indicating that additional income sources or a lower property price point may be necessary to ensure profitability.
Objection 2: Is there enough renter demand at 20.6%?
The rental demand in ZIP 01922, measured by the percentage of renter-occupied housing units, stands at 20.6%. This figure suggests that while there is some demand, it is relatively low compared to areas with higher percentages of renters. However, the actual number of potential tenants depends on the total housing stock and vacancy rates, which are not provided here. A thorough analysis would require examining these factors to determine if the demand is sufficient for Section 8 properties. Moreover, the quality and location of the property can influence demand regardless of the overall percentage of renters.
Objection 3: Will vouchers keep pace with N/A market rents?
The data indicates that market rent information for ZIP 01922 is currently unavailable. Without specific market rent figures, it's challenging to assess whether voucher amounts will match the local rental costs. However, historically, voucher amounts have often lagged behind market rents, particularly in areas experiencing rapid appreciation. Given the high median home value of $862,447, it's reasonable to assume that rental prices could be similarly elevated. Landlords should monitor local market trends and anticipate the possibility of receiving less than market value through vouchers.
In summary, while ZIP 01922 presents opportunities for Section 8 investments, careful consideration must be given to the financial feasibility of covering mortgage payments with the FMR, the adequacy of rental demand, and the potential mismatch between voucher amounts and market rents. Additional research into local market conditions and property specifics is recommended to make informed investment decisions.
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.