Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,520 |
| 1 Bedroom | $2,600 |
| 2 Bedrooms | $3,110 |
| 3 Bedrooms | $3,710 |
| 4 Bedrooms | $4,090 |
| 5 Bedrooms | $4,744 |
| 6 Bedrooms | $5,313 |
| 7 Bedrooms | $5,738 |
| 8 Bedrooms | $6,025 |
To frame ZIP 02196 (Unknown, MA) from the renter's perspective, we must first acknowledge the lack of specific data regarding median income and market rental rates. However, the Fair Market Rent (FMR) set by HUD for the zip code for fiscal year 2024 stands at $2930. This figure serves as a benchmark for the voucher payment standard, which is a significant consideration for both renters and landlords.
The voucher payment standard of $2930 represents the maximum amount that the federal government will pay landlords on behalf of low-income tenants participating in the Housing Choice Voucher Program, commonly known as Section 8. Given the absence of precise local income and market rate data, it is reasonable to infer that the FMR is likely reflective of the average rental cost in the area. This means that households relying solely on the voucher system would find it challenging to secure housing above this payment level without additional financial contributions.
The affordability gap in ZIP 02196 is substantial, especially considering the unknown percentage of renters and the total population. Landlords will face competition from those who accept vouchers, particularly if there is a high concentration of renters who qualify for such assistance. The gap between what renters can afford and the actual market rate, if higher than $2930, will influence the types of tenants landlords attract and the strategies they employ.
Takeaway for landlords: In ZIP 02196, landlords should carefully consider their strategy regarding voucher acceptance. While vouchers guarantee a steady stream of rental income at $2930 per month, landlords may also want to evaluate the potential for attracting tenants who can pay the market rate, which could be higher. Accepting vouchers can be a viable option in areas with a high percentage of low-income renters, but landlords should also be prepared to manage the administrative requirements associated with the program. For those interested in maximizing their rental income, focusing on attracting cash-paying tenants who can afford rates above the FMR might prove more lucrative, though this approach requires a thorough understanding of the local rental market dynamics and tenant demographics.
Data Sources: FMR data from HUD (2027).
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.