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 | $246,463 | 0.9% | C |
| 2BR | $2,650 | $504,446 | 0.53% | F |
| 3BR | $3,180 | $658,131 | 0.48% | F |
| 4BR | $3,510 | $908,296 | 0.39% | F |
| 5BR | $4,072 | $950,599 | 0.43% | F |
U.S. Census Bureau data (2024)
ZIP 02038, located in Franklin, Massachusetts, within the Boston-Cambridge-Quincy HUD Metro FMR area, can serve as a cash-flow anchor in a Section 8 portfolio strategy. The Fair Market Rent (FMR) for ZIP 02038 in fiscal year 2024 is set at $2380, while the average market rent stands at $2591. This means that landlords participating in the Section 8 program can expect a rental spread of $211 per unit above the FMR, ensuring stable cash flow.
The median home value in ZIP 02038 is $701,555, indicating a robust real estate market. However, the primary focus for a cash-flow anchor is on the consistency and reliability of rental income. With the FMR being slightly below the market rate, landlords can secure a steady stream of tenants through the Section 8 program without significantly compromising on rental revenue.
A key factor supporting this strategy is the low price-cut share of 0.1%, which suggests that properties in this ZIP code rarely need to be discounted to attract tenants. Additionally, the 20-day days-on-market (DOM) figure indicates that units are typically occupied quickly, reducing vacancy rates and associated costs. These metrics point to a strong demand for rental housing, making ZIP 02038 an ideal location for a cash-flow anchor.
Furthermore, the median income of $145,773 in ZIP 02038 ensures a financially stable tenant base. While only 21.8% of the population are renters, the high income levels suggest that those who do rent are likely to be reliable and able to meet their financial obligations consistently. This demographic stability reduces the risk of non-payment and enhances the predictability of cash flows.
In conclusion, ZIP 02038 is best suited as a cash-flow anchor in a Section 8 portfolio strategy due to its favorable rental spread, quick occupancy times, and stable tenant demographics. Landlords can expect consistent income with minimal risk, making this ZIP code a solid choice for maintaining the financial health of their investment portfolios.
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.