Section 8 Fair Market Rent (FMR) for ZIP 02149 - 2027

Investment Score for ZIP 02149

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,370
1 Bedroom	$2,440
2 Bedrooms	$2,920
3 Bedrooms	$3,480
4 Bedrooms	$3,840
5 Bedrooms	$4,454
6 Bedrooms	$4,988
7 Bedrooms	$5,387
8 Bedrooms	$5,656

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,440	$305,197	0.8%	D
2BR	$2,920	$505,519	0.58%	F
3BR	$3,480	$664,960	0.52%	F
4BR	$3,840	$726,185	0.53%	F
5BR	$4,454	$806,355	0.55%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 02149 (Everett, MA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 02149 in Everett, MA, for 2026 is set at $2760 for a two-bedroom unit. This figure represents 38.9% of the median household income in the area, which stands at $85,218. To understand how these FMRs compare to actual rents, we need to consider the occupancy rate and the percentage of renters in the population. With a renter population of 62.8% and an occupancy rate of 92.8%, it suggests that there is a strong demand for rental properties. However, the actual rents in the area are significantly higher than the FMRs. For instance, the Zillow median price for a two-bedroom unit is $503,084, which translates to a monthly rent of approximately $4192 based on typical mortgage payments and property taxes. This means the price-to-FMR ratio is 15.2 times, indicating that actual rents far exceed the FMRs. This high disparity creates significant constraints for voucher holders. They may struggle to find units that accept their vouchers, especially since landlords might prefer higher-paying tenants. The FMRs are also likely to be lower than what most landlords would charge to make a profit, leading to a limited pool of available Section 8 units. #### Affordability & Renter Profile Given that 62.8% of the population are renters and the median household income is $85,218, it is clear that Everett has a substantial number of residents who rely on rental housing. The high occupancy rate of 92.8% indicates that the market is relatively tight, with few vacant units available. This tightness is exacerbated by the fact that the actual rents are much higher than the FMRs. As a result, many renters, particularly those relying on Section 8 vouchers, face affordability challenges. The median household income of $85,218 suggests that while some residents can afford higher rents, a significant portion of the population may struggle to pay market rates. This makes the availability of affordable housing, including Section 8 units, crucial for maintaining a balanced rental market. The high renter percentage and occupancy rate indicate that the demand for rental units is robust, but the supply of affordable units is likely insufficient. #### Investor Angle From an investor’s perspective, the ZIP code 02149 presents both opportunities and challenges. The FMRs for different unit sizes are as follows: - 0BR: $2210 - 1BR: $2320 - 2BR: $2760 - 3BR: $3310 - 4BR: $3650 To determine if this ZIP code is cash-flow positive at FMR, we must consider the actual rents versus the FMRs. Given the Zillow median price for a two-bedroom unit at $503,084, the implied monthly rent is around $4192, which is significantly higher than the FMR of $2760. This implies that investors who rely solely on FMRs to set their rents will likely struggle to cover costs and generate a profit. However, the high price-to-FMR ratio suggests that there is a strong market for higher-priced rentals, which could be attractive to investors willing to cater to a broader range of tenants beyond just those using Section 8 vouchers. The investment grade for this ZIP code would be considered moderate due to the tight rental market and the potential for higher rents, but with the caveat that Section 8 units may not be financially viable without additional subsidies or creative financing strategies. #### Specific Actionable Insights 1. **Focus on Higher-Rent Units**: Given the high price-to-FMR ratio, investors should consider focusing on units that can command higher rents. A two-bedroom unit priced at $4192 per month would be more likely to generate positive cash flow compared to one priced at the FMR of $2760. 2. **Seek Alternative Financing Options**: For those interested in developing or acquiring properties specifically for Section 8 tenants, alternative financing options such as Low-Income Housing Tax Credits (LIHTC) or other government subsidies may be necessary to bridge the gap between actual costs and FMRs. These programs can help offset the financial constraints imposed by the low FMRs. 3. **Consider Mixed-Income Developments**: Creating mixed-income developments where a portion of units are reserved for Section 8 tenants and others are rented at market rates could provide a balanced approach. This strategy allows investors to leverage the higher rents from market-rate units to subsidize the lower rents from Section 8 units, thereby achieving overall financial viability. #### Bottom Line For Section 8-focused investors, the ZIP code 02149 presents a challenging environment due to the significant gap between FMRs and actual market rents. Without additional subsidies or creative financing, it is unlikely to be cash-flow positive. Therefore, the recommendation for this ZIP code is to **Skip** investments focused solely on Section 8 tenants. Investors should either look for alternative funding mechanisms or consider mixed-income developments to achieve financial sustainability in this market.

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.