Section 8 Fair Market Rent (FMR) for ZIP 02128 - 2027

Investment Score for ZIP 02128

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	$2,350
1 Bedroom	$2,430
2 Bedrooms	$2,900
3 Bedrooms	$3,460
4 Bedrooms	$3,810
5 Bedrooms	$4,420
6 Bedrooms	$4,950
7 Bedrooms	$5,346
8 Bedrooms	$5,613

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	$2,430	$516,354	0.47%	F
2BR	$2,900	$633,511	0.46%	F
3BR	$3,460	$741,754	0.47%	F
4BR	$3,810	$809,051	0.47%	F
5BR	$4,420	$1,006,749	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 02128 (Boston, MA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 02128 in Boston, Massachusetts, is set by HUD for the year 2026. The FMRs for different unit sizes are as follows: - 0BR: $2200 - 1BR: $2310 - 2BR: $2740 - 3BR: $3290 - 4BR: $3630 These figures represent the maximum rent that a Section 8 voucher holder can pay for their housing. However, comparing these FMRs to actual rents in the area reveals significant discrepancies. For instance, the Zillow median price for a 2BR unit in 02128 is $644,229, which translates to a monthly mortgage payment of approximately $3023, assuming a 4.5% interest rate and a 30-year fixed mortgage. This means the actual rent for a 2BR unit would likely be higher than the FMR of $2740. The price-to-FMR ratio for a 2BR unit is 19.6x, indicating that the actual rental costs are significantly higher than the FMR. This suggests that voucher holders face substantial constraints in finding affordable housing within the ZIP code. They might have to settle for smaller units or look outside the area to find housing that fits their budget. #### Affordability & Renter Profile ZIP code 02128 has a population of 43,345, with 71.0% of residents being renters. This high percentage indicates a strong demand for rental properties. The occupancy rate of 92.4% further supports the notion that the rental market is tight, with very few vacant units available. Given the median household income of $90,106, the affordability of housing becomes a critical issue. The FMR for a 2BR unit is $2740, which represents 36.5% of the median income. This is a relatively high proportion, suggesting that many residents, even those not on Section 8 vouchers, struggle to afford housing. The high rent-to-income ratio and the tight market conditions indicate that there is a significant gap between the cost of living and the ability of residents to pay for it. This makes it challenging for low-income families to find suitable housing without financial assistance. #### Investor Angle From an investor perspective, the ZIP code 02128 presents both opportunities and challenges. The FMRs are set below the actual market rents, which means that landlords who accept Section 8 vouchers will likely see lower cash flows compared to market-rate rentals. For example, a 2BR unit with a Zillow median price of $644,229 would typically command a rental price much higher than the FMR of $2740. If a landlord accepts a Section 8 voucher, they would be limited to this amount, which could result in negative cash flow if the mortgage payment exceeds the FMR. However, the high demand for rental properties and the limited supply suggest that there is potential for steady occupancy rates, which is crucial for long-term investment stability. Additionally, the high percentage of renters indicates a robust market for rental properties, making it attractive for investors willing to accept Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as 0BR or 1BR apartments. These units have lower FMRs ($2200 and $2310 respectively), which are closer to the actual market rents for similar-sized units. This could help mitigate the risk of negative cash flow. 2. **Consider Renovation Projects**: Investors looking to purchase older properties at a discount could renovate them to increase their value and appeal. By targeting properties that are currently priced below the Zillow median but still within the FMR range, they can potentially achieve positive cash flow while also providing better quality housing to voucher holders. 3. **Explore Alternative Financing Options**: Given the high prices, traditional financing might not be sufficient to cover the costs. Investors should explore alternative financing options such as government grants, tax credits, or partnerships with non-profit organizations that support affordable housing initiatives. #### Bottom Line For Section 8-focused investors, ZIP code 02128 presents a mixed picture. While the high demand for rental properties and the tight market conditions make it attractive, the significant gap between FMRs and actual market rents poses a challenge. **Recommendation**: **Hold**. Investors should hold off on purchasing larger units until they can secure financing that allows for positive cash flow. Smaller units and renovation projects might offer better opportunities for cash flow positivity and alignment with the needs of voucher holders. However, given the strong rental market, holding onto existing investments in this area could still be profitable due to the high occupancy rates and demand for rental properties.

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.