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 | $3,320 |
| 1 Bedroom | $3,420 |
| 2 Bedrooms | $4,090 |
| 3 Bedrooms | $4,870 |
| 4 Bedrooms | $5,380 |
| 5 Bedrooms | $6,241 |
| 6 Bedrooms | $6,990 |
| 7 Bedrooms | $7,549 |
| 8 Bedrooms | $7,926 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,420 | $639,171 | 0.54% | F |
| 2BR | $4,090 | $926,207 | 0.44% | F |
| 3BR | $4,870 | $1,350,636 | 0.36% | F |
| 4BR | $5,380 | $1,836,060 | 0.29% | F |
| 5BR | $6,241 | $2,107,136 | 0.3% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 02139 in Cambridge, Massachusetts, for fiscal year 2024 is set at $4,010. This figure represents the maximum amount that voucher holders can pay toward their rent under the Section 8 program. In comparison, the market rent for the area, as measured by the Zillow Observed Rent Index (ZORI), stands at $3,759. Given these numbers, voucher tenants will typically cashflow at the HUD FMR without issue, providing landlords with a reliable income stream that exceeds the average market rent.
The median home value in ZIP 02139 is $997,342. Using this figure, we can calculate a rent-to-price ratio, which is a key metric for understanding the relative affordability of renting versus buying in an area. The ratio, calculated as the annual market rent divided by the median home value, comes out to approximately 0.045, or 4.5%. This indicates that rental properties in Cambridge are relatively affordable compared to the cost of purchasing a home, which could influence the demand for rentals over homeownership.
The current rental market in Cambridge is characterized by a quick turnover, with a 15-day median Days on Market (DOM) and a very low 0.2% share of listings experiencing price cuts. These metrics suggest that the rental market is robust and that there is strong demand for rental units, which supports the viability of Section 8 investments in this area.
In summary, ZIP 02139 offers a stable and profitable environment for Section 8 investors due to the favorable cashflow potential and the strong rental market dynamics. The most compelling angle for investors in this area is the stability of income, given that the HUD FMR significantly exceeds the market rent, ensuring steady and predictable returns.
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.