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 | $2,220 |
| 1 Bedroom | $2,290 |
| 2 Bedrooms | $2,740 |
| 3 Bedrooms | $3,260 |
| 4 Bedrooms | $3,600 |
| 5 Bedrooms | $4,176 |
| 6 Bedrooms | $4,677 |
| 7 Bedrooms | $5,051 |
| 8 Bedrooms | $5,304 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,290 | $302,434 | 0.76% | D |
| 2BR | $2,740 | $567,187 | 0.48% | F |
| 3BR | $3,260 | $730,077 | 0.45% | F |
| 4BR | $3,600 | $880,359 | 0.41% | F |
| 5BR | $4,176 | $981,103 | 0.43% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 01923 (Danvers, MA) for Section 8, follow this decision tree based on the provided data:
1) Does FMR $2,580 (ZIP FY 2024) clear debt service on a $728,534 property?
No. The Fair Market Rent (FMR) of $2,580 does not cover the debt service on a property valued at $728,534. Debt service includes mortgage payments, property taxes, insurance, and maintenance costs. At this valuation, a typical debt service would exceed the FMR, making it financially unfeasible without additional subsidies or a lower purchase price.
It depends. If the property can be acquired at a lower price or has significantly reduced operating costs, the FMR might suffice. However, based on the average property value and standard operating expenses, the answer leans towards no.
2) Is market rent $2,775 (ZORI) above, at, or below FMR?
Above. The Zillow Rent Index (ZORI) for Danvers, MA, stands at $2,775, which is higher than the FMR of $2,580. This indicates that the market rent exceeds what Section 8 tenants can pay, potentially leading to a shortfall for landlords who rely solely on Section 8 vouchers.
Below. Not applicable here since the ZORI is above the FMR.
At. Not applicable here since the ZORI is above the FMR.
3) Are 30.8% renters + N/A-day days on market (DOM) enough demand?
Yes. With 30.8% of residents being renters, there is a significant rental market presence. However, the lack of specific data on days on market (DOM) makes it difficult to assess the speed at which properties are rented out. Generally, a high percentage of renters suggests robust demand, but landlords must also consider the time it takes to fill vacancies.
It depends. While the rental rate percentage is favorable, the absence of DOM data means that landlords cannot fully evaluate how quickly they can expect to lease their units. This uncertainty affects cash flow projections and overall investment viability.
In summary, purchasing a property in Danvers, MA, for Section 8 use is financially challenging due to the FMR not covering typical debt service on a property valued at $728,534. Additionally, the market rent exceeding the FMR will likely result in a financial gap for landlords. Despite the strong rental demand indicated by the 30.8% renter population, the lack of DOM data introduces an element of unpredictability into the investment decision. Landlords should carefully weigh these factors before deciding to invest in this ZIP code for Section 8 purposes.
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.