Section 8 Fair Market Rent (FMR) for ZIP 02151 - 2027

Investment Score for ZIP 02151

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	$2,210
1 Bedroom	$2,280
2 Bedrooms	$2,720
3 Bedrooms	$3,240
4 Bedrooms	$3,570
5 Bedrooms	$4,141
6 Bedrooms	$4,638
7 Bedrooms	$5,009
8 Bedrooms	$5,259

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,280	$355,702	0.64%	D
2BR	$2,720	$519,678	0.52%	F
3BR	$3,240	$668,230	0.48%	F
4BR	$3,570	$751,639	0.47%	F
5BR	$4,141	$828,945	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 02151 (Revere, MA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 02151 in Revere, Massachusetts, as of 2026, is set at $2570 for a two-bedroom unit. This amount represents 35.5% of the median household income in the area, which stands at $86,969. However, the actual rental market in Revere is significantly higher, with the Zillow median price for a two-bedroom unit being $521,042. This translates to a price-to-FMR ratio of 16.9x, indicating that actual rents are far above the FMR. For instance, a two-bedroom unit priced at $521,042 would be approximately $4200 per month if rented out, which is well over the $2570 FMR. This high disparity means that voucher holders face significant constraints in finding affordable housing. The FMR is designed to ensure that low-income families can afford decent housing, but with actual rents being so much higher, many voucher holders may struggle to find units within their budget. Landlords who accept Section 8 vouchers must keep their rent below the FMR, which could limit their pool of potential tenants to those who can only afford the lower rates. #### Affordability & Renter Profile Given that 54.4% of the population in Revere are renters, the demand for rental properties is substantial. The occupancy rate of 91.9% suggests that the rental market is quite tight, with very few vacant units available. This high occupancy rate indicates that there is strong competition among renters, driving up the cost of housing. The median household income of $86,969 implies that the typical renter in Revere has a relatively moderate income. However, with the FMR for a two-bedroom unit representing only 35.5% of the median income, it becomes clear that even moderate-income households might find it challenging to afford market-rate rentals. The high price-to-FMR ratio further exacerbates this issue, making it difficult for lower-income households to secure housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 02151 presents both opportunities and challenges. Given the high price-to-FMR ratio, landlords who accept Section 8 vouchers will likely see lower rental income compared to market-rate rentals. For example, a landlord renting a two-bedroom unit at the FMR of $2570 would be earning significantly less than the potential market rate of around $4200. However, the tight rental market and high occupancy rate suggest that there is a steady demand for rental properties. Investors who are willing to accept Section 8 vouchers can benefit from a consistent tenant base, albeit at lower rental rates. The investment grade in this ZIP code would be considered moderate due to the balance between steady demand and the limitations imposed by the FMR. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom or studio apartments. These units have lower FMRs ($2160 for a one-bedroom), which might be closer to market rates, thereby offering better cash flow. Additionally, smaller units are often more affordable for voucher holders, increasing the likelihood of securing tenants. 2. **Consider Renovation Projects**: With the median home value being significantly higher than the FMR, there may be opportunities to purchase older, undervalued properties and renovate them to meet the needs of voucher holders. By investing in renovations, landlords can potentially increase the desirability of their units while still keeping rents within the FMR limits. 3. **Explore Multi-Family Properties**: Multi-family properties can offer economies of scale, allowing investors to manage multiple units under one roof. This strategy can help mitigate the impact of lower rental rates on overall cash flow. For instance, a three-bedroom unit at $3080 FMR might be more attractive to larger families, providing a stable tenant base. #### Bottom Line For Section 8-focused investors, the ZIP code 02151 presents a mixed landscape. While the high price-to-FMR ratio poses challenges, the strong rental demand and high occupancy rate offer stability. Based on the provided data, the recommendation for this ZIP code is to **Hold**. Investors should carefully evaluate the types of units they own or plan to acquire, focusing on smaller units and multi-family properties to optimize cash flow. Renovation projects can also be considered to enhance property value and attract tenants within the FMR limits.

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.