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 | $2,700 |
| 1 Bedroom | $2,790 |
| 2 Bedrooms | $3,330 |
| 3 Bedrooms | $3,970 |
| 4 Bedrooms | $4,380 |
| 5 Bedrooms | $5,081 |
| 6 Bedrooms | $5,691 |
| 7 Bedrooms | $6,146 |
| 8 Bedrooms | $6,453 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,790 | $486,656 | 0.57% | F |
| 2BR | $3,330 | $640,509 | 0.52% | F |
| 3BR | $3,970 | $871,873 | 0.46% | F |
| 4BR | $4,380 | $1,009,977 | 0.43% | F |
| 5BR | $5,081 | $1,186,752 | 0.43% | F |
U.S. Census Bureau data (2024)
Medford's 02155 zip code offers a strategic blend of urban accessibility and suburban stability, making it a compelling market for landlords. Located just northwest of Boston, the neighborhood is characterized by a mix of historic single-family homes and denser multi-family properties near the Mystic River. The area is well-regarded for its strong school system and convenient transit options, including several MBTA bus lines and easy access to the Wellington Station on the Orange Line. A key local anchor is Tufts University, whose presence drives consistent demand for housing from faculty, staff, and graduate students seeking proximity to the campus.
From a financial perspective, the local data presents a distinct opportunity. The FY2026 2-Bedroom Fair Market Rate (FMR) is set at $3,250, which sits slightly below the current market rent of $3,208, creating a negative cash-flow gap of $42 if utilizing strictly voucher limits. However, investors should note the HUD SAFMR for this zip is $3,150, while the 3-Bedroom FMR rises significantly to $3,900. With a median home value of $842,755 and a swift 32 days on market, Medford demonstrates high asset liquidity and strong appreciation potential, even if the immediate 2-Bedroom rental spread appears tight.
The tenant pool here is robust, supported by a 46.0% renter share and a high median household income of $129,700. While this income level suggests a market that can generally afford competitive rents, it also indicates a stable, employed demographic where voucher holders may supplement income rather than rely on it entirely. Proximity to top-rated schools like Medford High School and major regional employers ensures sustained demand. For voucher tenants specifically, the neighborhood's walkability and transit connectivity reduce transportation costs, effectively increasing their disposable income for rent.
The Section 8 verdict for 02155 leans toward a long-term appreciation and stability play rather than immediate aggressive cash flow on standard units. The narrow gap between FMR and market rent suggests that 2-Bedroom units may not offer a premium over market rates, but the high entry price of $842,755 is justified by the area's desirability and quick turnover. Investors should target 3-Bedroom units where the $3,900 FMR offers better leverage against acquisition costs, capitalizing on the family-oriented demand driven by local educational institutions.
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.