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 | $3,270 |
| 1 Bedroom | $3,370 |
| 2 Bedrooms | $4,030 |
| 3 Bedrooms | $4,800 |
| 4 Bedrooms | $5,290 |
| 5 Bedrooms | $6,136 |
| 6 Bedrooms | $6,872 |
| 7 Bedrooms | $7,422 |
| 8 Bedrooms | $7,793 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,370 | $657,470 | 0.51% | F |
| 2BR | $4,030 | $1,114,912 | 0.36% | F |
| 3BR | $4,800 | $2,083,517 | 0.23% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 02109, part of the Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area, does not align favorably for landlords. The Fair Market Rent (FMR) set at $4240 for FY 2024 is higher than the actual market rent, Zillow Observed Rental Index (ZORI), which stands at $3,821. This discrepancy means that landlords may find it challenging to charge the FMR without losing tenants to more competitively priced properties.
Acquisition of properties in this ZIP code is not particularly affordable. With a median home value of $957,861, purchasing a rental property comes at a high cost. Additionally, the lack of data on days on market (DOM) and the low price-cut share of 0.2% indicate that homes are selling quickly and at close to their asking price, further reducing the window for negotiating lower purchase prices.
Tenant demand is robust in ZIP 02109. The area has a population of 3,612, with 68.3% of residents being renters. This high percentage of renters suggests a strong market for rental properties, but it also implies intense competition among landlords to attract and retain tenants.
In conclusion, while tenant demand is present in ZIP 02109, the rent math does not work in favor of landlords due to the disparity between the FMR and the actual market rent. Acquisition costs are prohibitive, with the median home value exceeding $957,000 and limited opportunities for price negotiation. Landlords and small-portfolio investors should proceed with caution and consider the potential for reduced profit margins despite the high demand for rental units.
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.