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 | $2,290 |
| 1 Bedroom | $2,360 |
| 2 Bedrooms | $2,820 |
| 3 Bedrooms | $3,360 |
| 4 Bedrooms | $3,710 |
| 5 Bedrooms | $4,304 |
| 6 Bedrooms | $4,820 |
| 7 Bedrooms | $5,206 |
| 8 Bedrooms | $5,466 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,360 | $369,544 | 0.64% | D |
| 2BR | $2,820 | $652,031 | 0.43% | F |
| 3BR | $3,360 | $910,661 | 0.37% | F |
| 4BR | $3,710 | $1,073,971 | 0.35% | F |
| 5BR | $4,304 | $1,198,247 | 0.36% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP 02176 in Melrose, MA under the Section 8 program are significant. Tenant turnover poses a notable challenge, with the market rent at $2,748 versus the Fair Market Rent (FMR) of $2,750 for FY 2024. This slight difference suggests that landlords may struggle to attract tenants who qualify for Section 8 vouchers, leading to higher turnover rates and increased costs associated with finding new tenants.
Vacancy exposure is another critical issue. With an average of only 7 days on the market (DOM), landlords might face periods where their properties remain unoccupied. During these times, they will not receive rental income but will still be responsible for property maintenance and other expenses. The typical home value in Melrose is $908,731, which is substantially higher than the median household income of $133,953. This disparity indicates that landlords could encounter deferred maintenance issues, as tenants with limited financial resources may prioritize rent payments over maintaining the property's condition.
However, these risks must be weighed against the high renter density in Melrose. The 32.8% renter share suggests a robust demand for rental properties, particularly among those who rely on Section 8 vouchers. This high concentration of renters increases the likelihood of finding qualified tenants willing to use their vouchers to secure housing, thereby stabilizing occupancy rates and reducing the risk of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.