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 | $2,900 |
| 1 Bedroom | $2,990 |
| 2 Bedrooms | $3,570 |
| 3 Bedrooms | $4,250 |
| 4 Bedrooms | $4,690 |
| 5 Bedrooms | $5,440 |
| 6 Bedrooms | $6,093 |
| 7 Bedrooms | $6,580 |
| 8 Bedrooms | $6,909 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,990 | $465,673 | 0.64% | D |
| 2BR | $3,570 | $664,045 | 0.54% | F |
| 3BR | $4,250 | $959,292 | 0.44% | F |
| 4BR | $4,690 | $1,298,228 | 0.36% | F |
| 5BR | $5,440 | $1,516,503 | 0.36% | F |
U.S. Census Bureau data (2024)
The ZIP code 02130 is located in the vibrant and diverse neighborhood of Dorchester in Boston, Massachusetts. This area is home to a significant population of 40,055 residents, with a substantial portion of 55.5% being renters. The median household income here stands at a robust $131,551, indicating a relatively affluent community. The median home value in the area is also quite high, at $812,716, reflecting the strong real estate market in this part of Boston.
When it comes to rental economics, the Fair Market Rent (FMR) for ZIP 02130 in fiscal year 2024 is set at $3,190. In comparison, the actual market rent, as measured by Zillow's ZORI index, is slightly higher at $3,364. This suggests that landlords can expect a modest premium over the FMR when renting to non-voucher tenants, but the gap is not wide enough to significantly impact the overall investment strategy.
Given these economic parameters, ZIP 02130 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For those who prefer a hands-off approach, the presence of a large rental market and the alignment between FMR and market rents make it feasible to manage properties effectively without extensive tenant screening. On the other hand, for investors looking to add value through renovations or property management improvements, the high median income and home values indicate a potential for increased returns through better quality rentals or higher-end renovations.
The key for investors will be to understand the local market dynamics, including the demand for different types of units and the competition from other rental properties. Given the high median income, there may be opportunities to cater to a slightly more upscale market segment, which could command higher rents and potentially attract fewer voucher tenants.
In summary, ZIP 02130 offers a balanced environment where both passive and active real estate strategies can thrive. The economic indicators point to a stable and potentially lucrative market for rental properties, making it an attractive option for landlords and small-portfolio investors alike.
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.