Location: Lawrence, MA | Metro: Lawrence, 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 | $1,940 |
| 1 Bedroom | $2,110 |
| 2 Bedrooms | $2,770 |
| 3 Bedrooms | $3,320 |
| 4 Bedrooms | $3,660 |
| 5 Bedrooms | $4,246 |
| 6 Bedrooms | $4,756 |
| 7 Bedrooms | $5,136 |
| 8 Bedrooms | $5,393 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,770 | $755,217 | 0.37% | F |
| 3BR | $3,320 | $877,552 | 0.38% | F |
| 4BR | $3,660 | $1,111,841 | 0.33% | F |
| 5BR | $4,246 | $1,280,872 | 0.33% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 01985, part of the Lawrence, MA-NH HUD Metro FMR Area, does not align favorably for landlords. The Fair Market Rent (FMR) for the area is set at $2,620 per month for FY 2024, whereas the actual market rent, according to Census ACS data, stands at $1,675. This significant gap means that landlords might struggle to find tenants willing to pay the higher FMR rate, especially since only a small portion of the population are renters.
Acquisition of properties in ZIP 01985 is moderately affordable. The median home value is $940,549. However, due to the lack of available data on days on market (DOM) and the percentage of homes needing price cuts, it's difficult to assess how competitive the local real estate market is. Landlords should be cautious about overpaying for properties, considering the discrepancy between FMR and market rent.
Tenant demand in ZIP 01985 is limited. The total population is 4,591, with only 4.2% being renters. This low renter share suggests that there may not be sufficient demand for rental properties, which could lead to vacancies and financial instability for landlords.
In conclusion, ZIP 01985 presents challenges for landlords and small-portfolio investors. The disparity between the FMR and the actual market rent indicates potential difficulties in attracting tenants. While property acquisition is moderately priced, the limited tenant demand and the need to compete with owner-occupied homes make this area less attractive for investment. Landlords must carefully consider these factors before entering the market in this ZIP code.
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.