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 | $2,810 |
| 1 Bedroom | $2,900 |
| 2 Bedrooms | $3,470 |
| 3 Bedrooms | $4,130 |
| 4 Bedrooms | $4,560 |
| 5 Bedrooms | $5,290 |
| 6 Bedrooms | $5,925 |
| 7 Bedrooms | $6,399 |
| 8 Bedrooms | $6,719 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,900 | $529,455 | 0.55% | F |
| 2BR | $3,470 | $717,780 | 0.48% | F |
| 3BR | $4,130 | $939,554 | 0.44% | F |
| 4BR | $4,560 | $1,034,590 | 0.44% | F |
| 5BR | $5,290 | $1,221,947 | 0.43% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP 02145 in Somerville, MA, for fiscal year 2024 is set at $3,160. Comparatively, the market rent as measured by ZORI (Zillow Observed Rent Index) stands at $3,482. This indicates that voucher tenants in this area will cashflow marginally at the FMR rate, given that the market rent is slightly higher.
The median home value in Somerville, MA, is $842,836. Using this figure, we can calculate a rent-to-price ratio. With the average market rent at $3,750, the rent-to-price ratio is approximately 0.44%, suggesting that rental income alone may not be sufficient to cover mortgage payments and other expenses on higher-priced homes.
The data does not provide a median days on market (DOM) or a price-cut share percentage for the area. However, these metrics would be useful in understanding the rent-versus-buy dynamics, especially for investors considering both rental and purchase options.
The strongest investor angle in Somerville, MA, is likely appreciation. Given the high median home values and the warm rental market temperature, there is potential for property value growth, which could provide significant returns for long-term investors.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.