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 | $3,550 |
| 1 Bedroom | $3,670 |
| 2 Bedrooms | $4,380 |
| 3 Bedrooms | $5,220 |
| 4 Bedrooms | $5,760 |
| 5 Bedrooms | $6,682 |
| 6 Bedrooms | $7,484 |
| 7 Bedrooms | $8,083 |
| 8 Bedrooms | $8,487 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,670 | $633,326 | 0.58% | F |
| 2BR | $4,380 | $1,032,962 | 0.42% | F |
| 3BR | $5,220 | $2,143,158 | 0.24% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 02114, Boston, MA, presents a unique opportunity for both landlords and small-portfolio investors. With a median home value of $741,485, the area is decidedly upscale, yet only 0.1% of listings have seen price reductions recently. This indicates strong seller's market conditions, where pricing power remains firmly in the hands of property owners.
The median days on market (DOM) being listed as N/A suggests that homes are selling quickly, often before reaching a typical DOM figure. Rapid sales combined with minimal price reductions point towards a robust demand for housing in the area, supporting the idea that current property values will likely remain stable or increase slightly over the next 12-24 months.
On the rental side, the Forward Monthly Rent (FMR) for ZIP 02114 in fiscal year 2024 is projected at $4,240, while the current market rate, as indicated by the Zillow Observed Rental Index (ZORI), stands at $3,510. This gap signals potential upward pressure on rental rates as the market adjusts to the higher FMR. Landlords and investors can expect to see an alignment between the FMR and ZORI, potentially leading to increased rental income over time.
For long-term investors, the setup implies a solid appreciation thesis. The high median home value coupled with rapid sales and minimal price reductions suggests a strong underlying demand for property in the area. As rental rates approach the FMR, the value proposition for owning versus renting will shift, likely driving further interest in purchasing properties. This dynamic supports the expectation that property values in ZIP 02114 will continue to hold steady or appreciate gradually, making it a favorable investment climate for those looking to hold assets for extended periods.
In summary, the combination of high median home values, rapid sales, and a growing gap between FMR and current rental rates points to a market where property owners maintain significant pricing power. Long-term investors can anticipate a scenario where their investments will retain or gain value, driven by both housing and rental market dynamics.
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.