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 | $2,770 |
| 1 Bedroom | $2,860 |
| 2 Bedrooms | $3,420 |
| 3 Bedrooms | $4,070 |
| 4 Bedrooms | $4,490 |
| 5 Bedrooms | $5,208 |
| 6 Bedrooms | $5,833 |
| 7 Bedrooms | $6,300 |
| 8 Bedrooms | $6,615 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,420 | $779,658 | 0.44% | F |
| 3BR | $4,070 | $982,883 | 0.41% | F |
| 4BR | $4,490 | $1,304,909 | 0.34% | F |
| 5BR | $5,208 | $1,528,777 | 0.34% | F |
U.S. Census Bureau data (2024)
The ZIP code 01940, located in Lynnfield, Massachusetts, presents a dynamic rental market that is closely aligned with federal guidelines. The Fair Market Rent (FMR) for the area stands at $3060 for fiscal year 2024, while the actual market rent, as measured by Zillow's ZORI index, is slightly lower at $2,976. This indicates a market where rents are generally in line with what is considered fair by federal standards, suggesting a balanced environment where neither landlords nor tenants are significantly disadvantaged.
The low price-cut share of 0.2% implies that properties are being listed at close to their asking price, which can be interpreted as a strong seller's market. In such a scenario, homes are likely to sell quickly without the need for significant reductions in price. However, the lack of data on days on market (DOM) makes it challenging to draw definitive conclusions about the speed at which homes are selling. Despite this gap in information, the median home value of $1,079,290 suggests a relatively affluent area where property values are robust.
A key indicator of long-term housing pressure is the 12.3% renter share. This figure is indicative of a community where a significant portion of residents are renters rather than homeowners. While this percentage might seem modest, it reflects a persistent demand for rental properties, which could put upward pressure on rents over time as the population grows or shifts towards renting. This dynamic can be seen as a signal of ongoing interest in the rental market, driven by factors such as lifestyle choices, financial considerations, or the affordability of homeownership.
In conclusion, ZIP 01940 appears to be a market characterized by a balance between federal guidelines and actual market conditions, with a slight indication of a seller's market in terms of home sales. The presence of a notable renter share points to an enduring demand for rentals, which may influence future trends in the rental sector. Landlords and small-portfolio investors should consider these factors when evaluating the potential for returns and growth in this ZIP code.
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.