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 | $349,316 | 0.64% | D |
| 2BR | $2,650 | $526,617 | 0.5% | F |
| 3BR | $3,180 | $634,062 | 0.5% | F |
| 4BR | $3,510 | $712,646 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 02191 in Weymouth, Massachusetts, reveals a stark contrast between government-subsidized rental income and market-driven rental rates. For a two-bedroom unit, the Fair Market Rent (FMR) for FY 2024 is set at $2450 per month, while the Census ACS reports an average market rent of $2,082 per month. With a median home value of $595,763 in the area, these figures translate into distinct gross yields.
Using the FMR of $2450, the annualized rental income would be $29,400. This results in a gross yield of approximately 4.93% when calculated against the median home value of $595,763. In contrast, the market rent of $2,082 translates to an annualized income of $24,984, leading to a gross yield of about 4.18%. These yields provide a baseline for understanding the potential returns on investment for properties participating in the Section 8 program versus those rented at market rates.
Given that only 15.1% of households in Weymouth are renters, it's evident that the market for rental properties is relatively small compared to owner-occupied homes. However, the N/A-day DOM (Days On Market) suggests that rental listings may move quickly once they are available, indicating a competitive environment for tenants seeking housing. Despite this, the lower renter density points towards a scenario where landlords might find it challenging to maintain a consistent stream of Section 8 tenants due to the limited pool of potential renters.
In conclusion, the Section 8 scenario offers a higher gross yield at 4.93%, compared to the market rate yield of 4.18%. However, the reality of finding and retaining qualified tenants under Section 8 could be more challenging given the low renter density. Landlords should weigh the benefits of the higher yield against the operational complexities and risks associated with the Section 8 program before making any investment decisions.
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.