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 | $3,080 |
| 1 Bedroom | $3,180 |
| 2 Bedrooms | $3,800 |
| 3 Bedrooms | $4,530 |
| 4 Bedrooms | $4,990 |
| 5 Bedrooms | $5,788 |
| 6 Bedrooms | $6,483 |
| 7 Bedrooms | $7,002 |
| 8 Bedrooms | $7,352 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,180 | $636,606 | 0.5% | F |
| 2BR | $3,800 | $897,841 | 0.42% | F |
| 3BR | $4,530 | $1,344,812 | 0.34% | F |
| 4BR | $4,990 | $1,821,166 | 0.27% | F |
| 5BR | $5,788 | $2,807,569 | 0.21% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 02140, Cambridge, MA, reveals a robust landscape for both homeowners and investors. With a median home value of $1,110,633, the area stands out as a high-end residential zone. The fact that only 0.2% of listings have reduced their prices suggests strong seller pricing power. This low reduction rate, coupled with the unavailability of median days on market (DOM), points to a brisk sales pace where homes are likely selling close to their asking price or even experiencing multiple offers.
For landlords and small-portfolio investors, the rental market dynamics provide further insight. The Fair Market Rent (FMR) for ZIP 02140 as of fiscal year 2024 is set at $3,640, while the Zillow Observed Rent Index (ZORI) currently sits at $3,217. This gap between FMR and ZORI indicates potential upward pressure on rents, as the observed market rates are below the fair market assessment. As such, landlords can anticipate opportunities to increase rental income in line with FMR adjustments, enhancing cash flow and investment returns.
Long-term investors should consider the underlying fundamentals supporting property values in Cambridge. The combination of a high median home value and a resilient rental market suggests that properties in ZIP 02140 will maintain their worth. Given the historical trend of increasing FMRs and the limited supply of housing in a densely populated urban area, there is a realistic thesis for continued appreciation. However, the exact rate of appreciation cannot be determined from the available data, but it is reasonable to expect that property values will track positively with inflation and local economic growth.
In summary, the data points to a market where sellers have significant pricing power, driven by high demand and limited reductions. Investors can leverage this by holding properties for long-term gains, benefiting from both capital appreciation and the potential for higher rental yields as market rates adjust towards FMR levels.
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.