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 | $2,780 |
| 1 Bedroom | $2,870 |
| 2 Bedrooms | $3,430 |
| 3 Bedrooms | $4,090 |
| 4 Bedrooms | $4,510 |
| 5 Bedrooms | $5,232 |
| 6 Bedrooms | $5,860 |
| 7 Bedrooms | $6,329 |
| 8 Bedrooms | $6,645 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,870 | $283,732 | 1.01% | B |
| 2BR | $3,430 | $668,119 | 0.51% | F |
| 3BR | $4,090 | $764,320 | 0.54% | F |
| 4BR | $4,510 | $1,091,003 | 0.41% | F |
| 5BR | $5,232 | $1,315,708 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 02067, Sharon, Massachusetts, is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $3080, while the Zillow Observed Rent Index (ZORI), which reflects the current market conditions, indicates an average rent of $2840. This creates a gap of $240, representing a 8.4% difference between what the government deems fair and what the market dictates.
When the FMR exceeds the market rent, as it does in Sharon, landlords can leverage this situation to enhance their investment yields. By participating in the Section 8 program, landlords receive rental payments that are higher than the typical market rate, thus increasing their cash flow and overall profitability. The additional $240 per month, or 8.4%, directly contributes to a landlord's bottom line, making the area attractive for those seeking to maximize returns on their rental properties.
However, accepting housing voucher tenants at rates below the open-market value comes with its own set of considerations. Despite the higher guaranteed payment, landlords must weigh the administrative burdens and potential maintenance costs associated with voucher holders. The median home value in Sharon is $867,798, and the median household income is $192,314, indicating a relatively affluent neighborhood. This context suggests that landlords might face competition from owners willing to rent at market rates without the complexities of the Section 8 program.
To summarize, the gap between the FMR and ZORI in ZIP 02067 presents a unique opportunity for landlords. They can choose to benefit from higher guaranteed payments through the Section 8 program, despite the market suggesting lower rents. This strategy can be particularly effective given the area's high median home values and incomes, but landlords should also consider the practical challenges of managing voucher tenants.
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.