Section 8 Fair Market Rent (FMR) for ZIP 02138 - 2027

Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area

Investment Score for ZIP 02138

F
Monthly Rent (2BR)
$4,310
Median Price (2BR)
$915,223
1% Rule
0.47%
Annual Yield
5.65%

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$3,500
1 Bedroom$3,610
2 Bedrooms$4,310
3 Bedrooms$5,140
4 Bedrooms$5,660
5 Bedrooms$6,566
6 Bedrooms$7,354
7 Bedrooms$7,942
8 Bedrooms$8,339

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $3,610 $631,664 0.57% F
2BR $4,310 $915,223 0.47% F
3BR $5,140 $1,636,012 0.31% F
4BR $5,660 $2,505,421 0.23% F
5BR $6,566 $4,274,056 0.15% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
38,509
Median Household Income
$119,967
Housing Units
16,043
Renter Percentage
58.1%
Occupancy Rate
88.3%
Renter Occupied
8,232

4120 is the Fair Market Rent (FMR) set for ZIP 02138 in fiscal year 2024, indicating the maximum allowable rent for a Section 8 voucher holder. However, the actual market rent, known as ZORI, stands at 3270, suggesting that landlords participating in the program can charge above the market rate. The median home value in the area is 1142125, reflecting a high-value neighborhood where rental properties can command premium rates. 58.1% of residents in ZIP 02138 are renters, underscoring a significant demand for rental housing. With a median income of 119967, tenants in this area have the financial means to afford higher rents, which benefits landlords. The average days on market (DOM) for rental listings is 29, showing that properties are typically occupied quickly once listed. Only 0.1% of rental listings require a price cut, indicating that landlords can maintain their asking prices without much adjustment. Given these factors, participation in the Section 8 program for ZIP 02138 is highly recommended for landlords and small-portfolio investors seeking stable rental income.

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.