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 | $2,220 |
| 1 Bedroom | $2,290 |
| 2 Bedrooms | $2,740 |
| 3 Bedrooms | $3,260 |
| 4 Bedrooms | $3,600 |
| 5 Bedrooms | $4,176 |
| 6 Bedrooms | $4,677 |
| 7 Bedrooms | $5,051 |
| 8 Bedrooms | $5,304 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,740 | $883,784 | 0.31% | F |
| 3BR | $3,260 | $1,005,172 | 0.32% | F |
| 4BR | $3,600 | $1,257,608 | 0.29% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 01951 (Newbury, MA) does not work favorably for landlords participating in the Section 8 program. The Fair Market Rent (FMR) set at $2380 for fiscal year 2024 is significantly higher than the reported market rent of $1856 based on Census ACS data. This discrepancy suggests that landlords might find it challenging to attract tenants willing to pay the higher FMR rate.
Regarding property acquisition, the median home value in Newbury stands at $979,982, which is quite high. However, due to the lack of data on days on market (DOM) and the percentage of homes requiring price cuts, it's difficult to assess the ease of acquiring properties at this price point. Landlords should proceed with caution when considering investment in this area, given the high median home value.
Tenant demand in Newbury is limited. With a total population of 3,327, only 8.6% of residents are renters. This low renter share indicates that the pool of potential tenants is relatively small, which could make it harder to find eligible Section 8 participants.
Verdict: Investing in ZIP 01951 for Section 8 rental properties is not advisable. The disparity between the FMR and the actual market rent makes the financials unattractive. Additionally, the high median home value coupled with the limited number of renters suggests both a challenging acquisition process and a thin market for finding tenants. Landlords and small-portfolio investors should consider other areas with a larger renter base and more favorable rent-to-market ratios.
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.