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 | $3,220 |
| 1 Bedroom | $3,320 |
| 2 Bedrooms | $3,970 |
| 3 Bedrooms | $4,730 |
| 4 Bedrooms | $5,220 |
| 5 Bedrooms | $6,055 |
| 6 Bedrooms | $6,782 |
| 7 Bedrooms | $7,325 |
| 8 Bedrooms | $7,691 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,320 | $670,969 | 0.49% | F |
| 2BR | $3,970 | $955,793 | 0.42% | F |
| 3BR | $4,730 | $1,220,792 | 0.39% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 02141, which encompasses parts of Cambridge, Massachusetts, presents a unique scenario for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $3570 for fiscal year 2024, is slightly above the market rent, which stands at $3,563 according to the Zillow Rent Index (ZORI). This creates a gap of $7, representing a 0.2% difference in favor of the FMR.
In a market where 74.5% of residents are renters, and the median home value is as high as $916,692, the slight edge in FMR over market rent means that landlords can benefit from a steady stream of rental income guaranteed by the federal government. Given that the median household income in Cambridge is $126,522, many residents qualify for assistance under the Section 8 program, making it a reliable option for landlords seeking consistent tenancy.
The voucher system ensures that tenants can afford to live in units priced at the FMR, even if they exceed the market rent. For landlords, this means that accepting Section 8 tenants can be a yield play, providing a slight buffer against potential market fluctuations. However, it's important to note that managing properties with Section 8 tenants comes with additional administrative responsibilities and must comply with HUD regulations, which can affect overall profitability.
Despite the minor advantage of FMR over market rent, the true challenge lies in understanding the costs associated with housing voucher tenants. Landlords must ensure that their units meet the Housing Quality Standards (HQS) and may face limitations on lease terms and rent increases. Additionally, there might be delays in receiving rent payments due to the processing times involved with the voucher program.
In conclusion, while the FMR provides a slight edge over the market rent in ZIP 02141, the decision to accept Section 8 tenants should be carefully weighed against the administrative and compliance costs. For landlords in Cambridge, the stability offered by the program can be an attractive feature, especially given the high percentage of renters and the significant median home values in the area.
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.