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 | $2,730 |
| 3 Bedrooms | $3,260 |
| 4 Bedrooms | $3,590 |
| 5 Bedrooms | $4,164 |
| 6 Bedrooms | $4,664 |
| 7 Bedrooms | $5,037 |
| 8 Bedrooms | $5,289 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,260 | $722,965 | 0.45% | F |
| 4BR | $3,590 | $1,018,390 | 0.35% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 02071, located within the Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area, reveals a challenging environment for achieving positive cash flow. The HUD Fair Market Rent (FMR) for the area is set at $2380 per month for fiscal year 2024. However, the market rent for the area is currently unavailable, making it difficult to directly compare the FMR against actual rental rates. Despite this, we can infer that voucher tenants will likely only cash flow in premium units or with significant improvements that justify higher rents.
To derive the rent-to-price ratio, we use the median home value of $845,340. Assuming an average mortgage rate and a typical down payment, the monthly mortgage payment would be approximately $3500, excluding property taxes and insurance. This suggests that the rent-to-price ratio is relatively low, as the FMR of $2380 falls short of covering the mortgage payment alone. Therefore, landlords should expect to subsidize the difference between the FMR and the actual cost of ownership, unless they can command higher rents through premium unit offerings.
In terms of the days-on-market (DOM) and the percentage of homes that experience price cuts, both figures are currently unavailable. However, these metrics are crucial for understanding the balance between renting and buying. A high DOM and a significant price cut percentage could indicate that the buy market is less attractive compared to the rental market, potentially driving more residents towards renting, including those using Section 8 vouchers.
The strongest angle for investors in ZIP 02071 is stability. Given the high median home value and the likelihood of consistent demand from voucher holders, the market offers a reliable tenant pool. While cash flow might be limited, the long-term stability and potential for appreciation in a high-value area make it a solid investment choice.
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.