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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,230 | $450,851 | 0.49% | F |
| 2BR | $2,650 | $601,086 | 0.44% | F |
| 3BR | $3,180 | $634,525 | 0.5% | F |
| 4BR | $3,510 | $796,328 | 0.44% | F |
| 5BR | $4,072 | $915,609 | 0.44% | F |
U.S. Census Bureau data (2024)
ZIP code 02125, located in Boston, MA, is part of the Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area. Its Fair Market Rent (FMR) for FY 2024 is set at $2380, which is significantly lower than the market rent of $3,402. This disparity indicates that the area is more affordable for subsidized housing tenants under the Section 8 program compared to what the general market demands.
The median home value in ZIP 02125 stands at $663,556, a figure that is representative of the overall housing costs in the broader Boston metropolitan area. However, the substantial 65.1% renter share suggests a strong demand for rental properties, particularly among those seeking affordable options.
When comparing these figures to typical ZIP codes within the Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area, ZIP 02125 emerges as a mid-tier neighborhood. The FMR is notably lower than the market rent, implying that it offers some value for both landlords and low-income renters participating in the Section 8 program. Yet, the home values are consistent with the metro average, indicating that it is not a value pocket where property prices are significantly below the metro norm.
The high renter share combined with below-market FMR rates points to a sweet spot for landlords interested in Section 8 tenants. It suggests that there is a robust pool of potential renters who can benefit from the subsidy, making it easier to fill units and maintain occupancy. However, landlords should also be aware that the market rent is considerably higher than the FMR, meaning that without subsidies, the area could attract higher-paying tenants.
In summary, ZIP 02125 represents a mid-tier neighborhood within the Boston metro, offering a balance between affordability for subsidized housing and competitive market rents. Its characteristics make it an attractive location for landlords willing to participate in the Section 8 program.
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.