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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,230 | $435,993 | 0.51% | F |
| 2BR | $2,650 | $732,342 | 0.36% | F |
| 3BR | $3,180 | $992,551 | 0.32% | F |
| 4BR | $3,510 | $1,333,111 | 0.26% | F |
| 5BR | $4,072 | $1,929,971 | 0.21% | F |
U.S. Census Bureau data (2024)
The ZIP code 01945, located in Marblehead, MA, presents an interesting scenario when viewed from the renter's perspective. The median income for households in this area stands at $179,583, which is significantly higher than the national average. Despite this high median income, the market rate rent, known as the ZORI (Zillow Observed Rent Index), is set at $2,833 per month. This figure represents the typical cost for renting a property in the area.
Comparatively, the Fair Market Rent (FMR) for ZIP 01945, which is used to determine the payment standards for housing vouchers, is set at $2,570 for the fiscal year 2024. This means that for those receiving housing assistance, the government will pay up to $2,570 towards their rent. However, this amount falls short of the market rate rent, creating a notable affordability gap for voucher holders.
In Marblehead, only 14.7% of the total population of 20,470 are renters, indicating a relatively low demand for rental properties. This low percentage suggests that landlords might face less competition from other property owners looking to attract tenants. However, the affordability gap between the ZORI and the FMR could influence the rental market dynamics, especially for landlords considering whether to accept vouchers or focus on cash-paying tenants.
The takeaway for landlords is clear: while the high median income suggests a strong potential for cash-paying tenants willing to meet the $2,833 market rate, the lower FMR payment standard of $2,570 for voucher recipients introduces a significant challenge. Landlords must weigh the benefits of accepting vouchers, such as guaranteed payments from the government, against the risk of not fully covering their costs. For landlords who can offer competitive rates without compromising on property quality, attracting both voucher and cash-paying tenants could be a balanced strategy. However, those aiming to maximize profits should consider focusing on the higher-income segment of the market, where the likelihood of securing cash-paying tenants is greater given the local economic conditions.
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.