Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area
| 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 |
The economics of Section 8 in ZIP code 01931, which is part of the Boston-Cambridge-Quincy County area, are governed by the Specific Area Fair Market Rent (SAFMR) rates. For a two-bedroom apartment in this ZIP code, the SAFMR for fiscal year 2024 is set at $2380. This rate is specifically tailored for this ZIP code, reflecting the unique rental market dynamics here.
A landlord participating in the Section 8 program receives a subsidy based on the SAFMR minus the tenant's portion of the rent. The tenant is required to pay 30% of their adjusted income towards the rent. Additionally, there are utility allowances that can vary but typically do not exceed a few hundred dollars per month.
To illustrate, if a tenant's portion of the rent is $714 (assuming an adjusted income of $2380), and the utility allowance is $200, then the total amount paid by the tenant and the government would be $914. Therefore, the landlord would receive the following monthly payment:
This means that the landlord will receive a total of $914 per month from the housing authority and the tenant combined. Given the SAFMR of $2380, the difference between the SAFMR and the actual payment received is the reimbursement gap. In this case, the reimbursement gap for a two-bedroom apartment is $1466.
Landlords should understand that this gap represents the shortfall between the market rent and the amount subsidized by the Section 8 program. While the SAFMR of $2380 sets the maximum allowable rent, the actual reimbursement will be less due to the tenant's contribution and the utility allowance. As such, landlords must weigh the benefits of having a guaranteed portion of the rent against the financial gap they will have to absorb.
In summary, the typical reimbursement for a two-bedroom apartment under the Section 8 program in ZIP 01931 is $914, resulting in a reimbursement gap of $1466. This gap is a critical consideration for landlords when deciding whether to participate in the program.
Data Sources: FMR data from HUD (2027).
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.