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 | $845,230 | 0.4% | F |
| 2BR | $4,090 | $1,552,682 | 0.26% | F |
U.S. Census Bureau data (2024)
In ZIP code 02142, located in Cambridge, Massachusetts, the Fair Market Rent (FMR) for a single-family home in fiscal year 2024 is set at $4240. This figure raises immediate concerns for landlords and small-portfolio investors regarding whether it can sufficiently cover the mortgage on a home priced at $1,311,573. The FMR represents the maximum amount that a household should pay for housing costs, including utilities, and it does not directly correlate to the monthly mortgage payment on a property valued at $1,311,573. To accurately assess if the FMR covers the mortgage, one must consider the interest rate and loan terms. However, based solely on the FMR, it is unlikely to cover a mortgage on a property of this value without additional income from other sources.
The occupancy rate in ZIP 02142 stands at 93.1%, which is a positive indicator of renter demand. Despite this high rate, investors might still question whether there is sufficient demand to fill vacancies quickly. While a 93.1% occupancy rate suggests strong tenant interest, it does not guarantee that every vacancy will be filled rapidly. It is important to note that even with such a high occupancy rate, market conditions can fluctuate, and factors like local economic changes, university enrollment patterns, and housing preferences can impact demand.
A key concern for landlords participating in the Section 8 program is whether voucher amounts will keep up with market rents. In ZIP 02142, the average market rent is $3,907. The Section 8 voucher program aims to provide subsidies that help low-income families afford housing, but the actual voucher amount can vary widely based on family size, income level, and other factors. According to the latest data, the voucher amounts in ZIP 02142 do not always match the market rents, leading to potential shortfalls for landlords. This discrepancy means that landlords may have to rely on additional income from non-voucher tenants or other revenue streams to balance their finances.
To summarize, while the data indicates strong tenant demand and reasonable market rents, the FMR alone is insufficient to cover the mortgage on a $1,311,573 home. Additionally, the gap between market rents and voucher amounts poses a challenge for landlords in maintaining profitability. Investors must carefully evaluate these factors and consider diversifying their investment strategies to mitigate risks associated with Section 8 participation in ZIP 02142.
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.