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 |
|---|---|---|---|---|
| 1BR | $2,230 | $323,042 | 0.69% | D |
| 2BR | $2,650 | $471,124 | 0.56% | F |
| 3BR | $3,180 | $633,973 | 0.5% | F |
| 4BR | $3,510 | $738,600 | 0.48% | F |
| 5BR | $4,072 | $828,028 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 02189 (Weymouth, MA) provides insight into potential investment returns. The Fair Market Rent (FMR) for a 2-bedroom apartment in Weymouth for FY 2024 is set at $2390 per month. When annualized, this equates to an annual rental income of $28,680. Given the median home value of $596,351, the implied gross yield for a property rented under Section 8 guidelines would be approximately 4.81%. This calculation is derived from dividing the annual rental income by the median home value.
In contrast, the Zillow Observed Rental Index (ZORI) for the area indicates a market rent of $2,553 per month. Annualizing this figure yields an annual rental income of $30,636. Using the same median home value, the implied gross yield based on market rent would be about 5.14%. This represents a slightly higher return compared to the Section 8 scenario.
Evaluating the two scenarios, the market rent yield is more realistic due to the higher renter density in the area. With 34.3% of residents being renters, there is a significant demand for rental properties. However, the lack of data on days on market (DOM) makes it challenging to predict how quickly a property might be leased under either scenario. Despite this, the market rent yield of 5.14% offers a clearer, more competitive picture for investors looking to maximize their returns in Weymouth, MA.
The gross-yield comparison between the Section 8 scenario and the market rent scenario highlights the trade-offs involved in accepting Section 8 tenants versus market-rate renters. While Section 8 provides stable, government-backed rental income, the lower gross yield of 4.81% may not be as attractive to some investors when compared to the 5.14% offered by market rates. The choice ultimately depends on the investor's risk tolerance and investment goals.
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.