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 | $2,130 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,650 | $461,824 | 0.57% | F |
| 3BR | $3,180 | $570,092 | 0.56% | F |
| 4BR | $3,510 | $673,351 | 0.52% | F |
| 5BR | $4,072 | $773,473 | 0.53% | F |
U.S. Census Bureau data (2024)
2380 is the Fair Market Rent (FMR) for ZIP code 02121 in Boston, MA, for fiscal year 2024, setting a benchmark for rental properties seeking Section 8 participation. 3170 represents the actual market rent (ZORI) in the same area, indicating a significant premium over the FMR. This suggests that landlords can potentially earn above the subsidized rates if they choose to operate outside the program. 644984 is the median home value in ZIP 02121, reflecting the high cost of property ownership in this part of Boston. 76.8% is the proportion of residents who are renters, underscoring the strong demand for rental housing in the area. 43136 is the median income figure for the ZIP code, which is notably lower than the median home value, highlighting the economic divide and the reliance on affordable housing solutions such as Section 8.
The absence of data for days on market (DOM) and the percentage of price-cut share indicates either a robust market where homes sell quickly or a lack of comprehensive data regarding these metrics. In either case, it signals stability in the local real estate market, which is beneficial for long-term investments.
Given the disparity between the FMR and the ZORI, landlords in ZIP 02121 must carefully consider their participation in the Section 8 program. While the 2380 FMR might be lower than the 3170 market rate, the guaranteed income and lower vacancy risk could outweigh the difference in rent. Additionally, the high renter share of 76.8% ensures a steady pool of potential tenants.
In conclusion, despite the lower FMR compared to the market rent, the strong rental demand and the economic conditions of ZIP 02121 make it a viable location for Section 8 properties. The program can serve as a reliable investment strategy, especially given the limited days on market data and the high median home value that restricts homeownership for many residents.
Verdict: Section 8 is a solid investment option in ZIP 02121 due to the high demand for rentals and the economic realities faced by many residents.
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.