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 | $2,130 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,650 | $783,548 | 0.34% | F |
| 3BR | $3,180 | $983,057 | 0.32% | F |
| 4BR | $3,510 | $1,239,669 | 0.28% | F |
| 5BR | $4,072 | $1,823,846 | 0.22% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 02186, Milton, MA, suggests a robust market with strong pricing power for the immediate future. The median home value stands at a significant $1,075,523, indicating that homeowners have substantial equity. This high median value is further supported by the fact that only 0.1% of listings have seen price reductions, which points to a seller's market where homes are valued at their asking price. Additionally, the median days on market (DOM) of just 8 days highlights the brisk pace at which properties are selling, reinforcing the notion that demand outstrips supply.
The rental market in Milton also reflects a favorable environment for landlords and investors. The Fair Market Rent (FMR) for ZIP 02186 for fiscal year 2024 is set at $2,380. However, the actual market rent, measured by the Zillow Observed Rent Index (ZORI), is notably higher at $3,350. This gap between FMR and ZORI suggests that the rental market is buoyant, with tenants willing to pay above government-set fair market rates. Landlords can leverage this trend to maintain or slightly increase rents without losing tenants, thus preserving cash flow and potentially improving returns.
For long-term hold investors, the appreciation thesis in Milton is anchored by the underlying strength of the housing market. The low rate of price reductions and swift sales indicate that home values are stable and likely to continue appreciating. While precise future values cannot be stated, the current trends suggest that appreciation will likely follow historical patterns, with an annual increase of around 3-5%. This steady growth provides a solid foundation for capital gains over the next 12-24 months.
Investors should also consider the potential for rental income growth. As the market rent continues to exceed the FMR, there is a clear indication that Milton's rental market is healthy and could see further increases in rent levels, especially if new supply remains limited. This dynamic supports the strategy of holding onto properties for longer periods, as both rental income and property value are poised to rise.
In summary, the combination of high median home values, minimal price reductions, quick sales, and a robust rental market all point to Milton, MA, maintaining strong pricing power. Investors can expect stable appreciation and the ability to command higher rents, making it a sound location for both short-term and long-term investments.
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.