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 |
|---|---|---|---|---|
| 1BR | $2,230 | $459,370 | 0.49% | F |
| 2BR | $2,650 | $719,226 | 0.37% | F |
| 3BR | $3,180 | $1,010,665 | 0.31% | F |
| 4BR | $3,510 | $1,315,526 | 0.27% | F |
| 5BR | $4,072 | $1,658,726 | 0.25% | F |
U.S. Census Bureau data (2024)
In ZIP 01950, which encompasses Newburyport, MA, in Essex County, the Section 8 housing program operates under specific economic parameters. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $2380. This figure is crucial because it represents the maximum amount that the government will reimburse a landlord for renting a unit to a Section 8 participant.
The local market rent for a two-bedroom unit, as measured by ZORI (Zillow Observed Rent Index), stands at $3,097. This discrepancy between the SAFMR and the ZORI highlights the financial dynamics landlords must consider when accepting Section 8 tenants.
A landlord participating in the Section 8 program receives reimbursement based on the SAFMR. However, the total payment received includes both the tenant's contribution and any utility allowances. For a two-bedroom unit, the tenant typically pays 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,586 (the amount that would result in a 30% contribution equal to the difference between the SAFMR and the tenant's share), the tenant would pay $476 towards rent.
The remaining amount is covered by the Section 8 voucher, which in this case would be $1904 ($2380 - $476). This reimbursement is intended to make up for the shortfall between what the tenant can afford and the SAFMR. Utility allowances vary but generally add around $200 to $300 to the monthly reimbursement, depending on the tenant's actual expenses and the government's standard allowance for the area.
To summarize, a landlord in ZIP 01950 who accepts a Section 8 voucher for a two-bedroom unit can expect a reimbursement of approximately $2104 to $2204 per month, including the tenant's contribution and utility allowances. Given the local market rent of $3,097, this leaves a significant gap of $893 to $993 per month that the landlord must absorb if they choose to participate in the program.
This gap reflects the economic reality of Section 8 participation in Newburyport, MA. While the program ensures steady, government-backed rental payments, it does not cover the full market value of the property. Landlords should carefully weigh this financial impact against the benefits of having reliable tenants.
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.