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 | $2,940 |
| 1 Bedroom | $3,030 |
| 2 Bedrooms | $3,620 |
| 3 Bedrooms | $4,310 |
| 4 Bedrooms | $4,760 |
| 5 Bedrooms | $5,522 |
| 6 Bedrooms | $6,185 |
| 7 Bedrooms | $6,680 |
| 8 Bedrooms | $7,014 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,030 | $708,376 | 0.43% | F |
| 2BR | $3,620 | $1,163,950 | 0.31% | F |
| 3BR | $4,310 | $2,107,952 | 0.2% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 02111, located in the Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area, does indeed work favorably for landlords. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $3870, which is slightly above the market rent indicated by Zillow's Owner Occupied Renter Index (ZORI) at $3,703. This means that rental properties can be priced competitively while still meeting the FMR threshold, providing a margin for landlords.
Acquisition of homes in this area is challenging due to the high median home value of $987,790. However, the lack of days on market (DOM) data and the low price-cut share of 0.1% suggest that homes are selling quickly without significant discounts. This indicates a robust real estate market where homes retain their value, making investment in this area worthwhile despite the initial high cost.
Tenant demand in ZIP 02111 is strong, with a total population of 8,407 and 73.8% of residents being renters. This high percentage of renters implies a consistent pool of potential tenants, ensuring steady occupancy rates and reducing the risk of vacancies.
Verdict: ZIP 02111 presents a favorable environment for landlords and small-portfolio investors. The slight premium in FMR over market rent allows for competitive pricing without sacrificing profitability. Although the median home value is high, quick sales and minimal price adjustments indicate strong property value retention. With a significant portion of the population renting, there is ample tenant demand to support a stable income stream. These factors collectively make the area attractive for real estate investments focused on rentals.
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.