Section 8 Fair Market Rent (FMR) for ZIP 02124 - 2027

Investment Score for ZIP 02124

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,230	$444,221	0.5%	F
2BR	$2,650	$541,036	0.49%	F
3BR	$3,180	$654,910	0.49%	F
4BR	$3,510	$789,346	0.44%	F
5BR	$4,072	$891,456	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 02124 (Boston, MA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 02124 in Boston, Massachusetts, indicate that the rent for a two-bedroom apartment is set at $2,560 per month. This represents 37.5% of the median household income in the area, which is $81,923. However, the actual median rent for a two-bedroom apartment on Zillow is $548,719, which translates to a monthly rent of approximately $45,725 based on a typical mortgage payment calculation. The price-to-FMR ratio of 17.9x suggests that actual rents are significantly higher than the FMR rates. This discrepancy means that Section 8 voucher holders face significant constraints in finding affordable housing. The FMR is only a fraction of what landlords might charge, making it difficult for voucher recipients to secure units within their budget. For example, a landlord charging the Zillow median would be asking for about 18 times the FMR rate, which is far beyond what most voucher holders can afford. #### Affordability & Renter Profile ZIP code 02124 has a population of 56,216, with 58.6% of residents being renters. The occupancy rate is 95%, indicating a very tight rental market where demand consistently exceeds supply. Given the high percentage of renters and the low vacancy rate, the competition for available units is fierce. The median household income of $81,923 suggests that the majority of residents are middle-class or above. However, the high rent-to-income ratio implies that even those earning close to the median income struggle to find affordable housing. The FMR for a three-bedroom unit is $3,080, which is still quite a stretch for many households given the actual rental prices. This tight market is further exacerbated by the fact that the FMR is not reflective of the actual rental prices. As such, the area is likely to have a significant number of residents who are cost-burdened, meaning they spend more than 30% of their income on housing costs. #### Investor Angle From an investor perspective, the ZIP code 02124 presents a challenging scenario when considering cash flow based solely on FMR rates. The FMR for a two-bedroom unit is $2,560, while the actual median rent is $45,725. This means that an investor relying on FMR rates would likely see negative cash flow if they were to purchase a property at the median price and rent it out at the FMR rate. However, the high actual rents suggest that there could be opportunities for investors willing to accept tenants with Section 8 vouchers, but only if they are prepared to negotiate with local housing authorities or find ways to offset the lower rents through other means, such as government subsidies or tax benefits. The investment grade in this area would be considered high risk due to the significant gap between FMR and actual rents, but potentially rewarding if the investor can secure a tenant who pays closer to the actual market rate. #### Specific Actionable Insights 1. **Negotiate with Housing Authorities:** Investors should consider negotiating with local housing authorities to secure higher subsidy payments for Section 8 vouchers. This can help bridge the gap between FMR and actual market rents. For instance, if a housing authority agrees to a subsidy that brings the total rent closer to the actual market rate of $45,725, it could make the investment more viable. 2. **Target Larger Units:** Given that the FMR for larger units (such as four-bedroom apartments) is $3,390, which is still well below the actual market rate, investors might want to focus on acquiring properties with larger units. These units are less likely to be occupied by voucher holders due to the high cost burden, but they offer more potential for higher rents and better cash flow. 3. **Consider Alternative Investment Strategies:** Due to the high price-to-FMR ratio, traditional buy-and-rent strategies may not be profitable. Investors might consider alternative strategies such as short-term rentals or converting multi-family units into condominiums, which could fetch higher prices in the current market. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 02124 is to **Skip** this area unless they can secure additional subsidies or have a strategy to mitigate the financial risks associated with renting at FMR rates. The actual rents are so much higher than the FMR that it would be difficult to achieve positive cash flow without significant adjustments or alternative approaches.

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.