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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,650 | $700,648 | 0.38% | F |
| 3BR | $3,180 | $863,774 | 0.37% | F |
| 4BR | $3,510 | $1,189,904 | 0.29% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 01929, located in Essex, Massachusetts, involve understanding the Specific Area Fair Market Rent (SAFMR) and how it compares to the local market rent. For a two-bedroom apartment in this ZIP code, the SAFMR for fiscal year 2024 is set at $2,380. This figure represents the maximum amount that a landlord can receive from the Section 8 program for a unit in this specific ZIP code.
However, the local market rent, according to the Census American Community Survey (ACS), is $1,964. This indicates that the SAFMR is higher than the average rent in the area, which could be beneficial for landlords participating in the program.
A Section 8 voucher works by covering the difference between the tenant's portion of the rent and the total rent amount, up to the SAFMR. The tenant typically pays 30% of their adjusted income toward the rent. For example, if a tenant's monthly income is $2,000, they would pay approximately $600 towards the rent. The remaining amount up to the SAFMR would be covered by the voucher.
In addition to the base rent, there are utility allowances that can vary based on the type of utilities used in the property. These allowances are designed to help cover the cost of electricity, gas, water, and other essential services. The exact allowance will depend on the specifics of the property and the tenant's situation, but it is an additional payment made directly to the landlord.
To illustrate, let’s assume a two-bedroom apartment in ZIP 01929 is rented for $2,380 per month, which is the SAFMR. If the tenant pays $600, then the voucher would cover the remaining $1,780. However, if the local market rent is only $1,964, the voucher would still cover up to $2,380, meaning the landlord would receive the full market rent plus an additional $416, effectively creating a surplus for the landlord.
The typical reimbursement gap or surplus in ZIP 01929 for a two-bedroom apartment is a surplus of $416. This means that landlords in this ZIP code who participate in the Section 8 program could potentially receive more than the local market rent for a similar unit, making it a financially viable option for those looking to stabilize occupancy and ensure consistent rental income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.