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 | $2,330 |
| 1 Bedroom | $2,400 |
| 2 Bedrooms | $2,870 |
| 3 Bedrooms | $3,420 |
| 4 Bedrooms | $3,770 |
| 5 Bedrooms | $4,373 |
| 6 Bedrooms | $4,898 |
| 7 Bedrooms | $5,290 |
| 8 Bedrooms | $5,555 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,870 | $631,328 | 0.45% | F |
| 3BR | $3,420 | $790,811 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 02120, located in Boston, Massachusetts, presents a unique challenge for renters given the stark contrast between their median income and the market rate for housing. The median household income in this area stands at $64,289, which translates to an average monthly income of approximately $5,357. However, the market rate for rent, measured by the Zillow Observed Rent Index (ZORI), is set at $4,920 per month. This means that a significant portion of a household's income would be dedicated to rent alone, leaving little room for other expenses.
In comparison, the federal housing voucher payment standard for Fair Market Rent (FMR) in ZIP 02120 for fiscal year 2024 is set at $2,850. This amount represents a substantial reduction in the financial burden on renters, making it much easier for them to find affordable housing options. The difference between the ZORI and the FMR highlights a significant affordability gap, where the market rate is almost double what the government considers fair for subsidized housing.
Given that 90.8% of the population in ZIP 02120 are renters, and with a total population of 15,283, there is intense competition among landlords for tenants who can afford the high market rates. Landlords must carefully consider their tenant acquisition strategies, particularly when deciding whether to accept vouchers or focus on cash-paying tenants.
The takeaway for landlords is clear: accepting vouchers can provide a steady stream of rental income, albeit at a lower rate compared to market rents. On the other hand, focusing on cash-paying tenants might yield higher immediate returns but comes with the risk of vacancy due to the limited number of households capable of affording the high market rates. Therefore, landlords should weigh the benefits of both approaches and consider diversifying their tenant mix to balance risk and reward.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.