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 | $2,660 |
| 1 Bedroom | $2,790 |
| 2 Bedrooms | $3,320 |
| 3 Bedrooms | $3,970 |
| 4 Bedrooms | $4,390 |
| 5 Bedrooms | $5,092 |
| 6 Bedrooms | $5,703 |
| 7 Bedrooms | $6,159 |
| 8 Bedrooms | $6,467 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,320 | $1,018,092 | 0.33% | F |
| 3BR | $3,970 | $1,311,263 | 0.3% | F |
| 4BR | $4,390 | $1,750,079 | 0.25% | F |
| 5BR | $5,092 | $2,600,192 | 0.2% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 02030 in Dover, MA, centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 02030 in fiscal year 2024 is set at $3670, whereas the Census ACS reports the average market rent at $2,917. This creates a gap of $753, or approximately 25.8%, in favor of the FMR.
In Dover, where only 2.1% of residents are renters, the high median home value of $1,761,115 and median income of $250,015 suggest a predominantly owner-occupied market. Despite this, the higher FMR compared to the market rent makes it a compelling yield play for landlords and small-portfolio investors who can attract voucher tenants. These tenants are guaranteed rental income that exceeds the local market rate, thereby increasing the potential rental yield.
The FMR is established by HUD to ensure that low-income families have access to decent and safe housing. In Dover, the FMR is significantly above the market rent, which means landlords can charge a premium for units occupied by voucher holders. This premium is particularly attractive given the low percentage of renters and the high cost of homeownership in the area. For investors, this translates into a higher net operating income (NOI) and potentially better cash-on-cash returns compared to renting out properties at market rates.
However, it's important to note that while the FMR provides a higher rent ceiling, the actual management of Section 8 properties requires compliance with HUD regulations and the maintenance of property standards. These factors can influence the overall profitability but do not negate the significant yield advantage offered by the gap between FMR and market rent.
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.