Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,470 |
| 1 Bedroom | $2,550 |
| 2 Bedrooms | $3,050 |
| 3 Bedrooms | $3,630 |
| 4 Bedrooms | $4,010 |
| 5 Bedrooms | $4,652 |
| 6 Bedrooms | $5,210 |
| 7 Bedrooms | $5,627 |
| 8 Bedrooms | $5,908 |
The ZIP code 02238, located within the Boston-Cambridge-Quincy County area in Massachusetts, presents an interesting opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for the area is set at $2870 for fiscal year 2024. However, due to the lack of specific market rent data, it's challenging to directly compare the HUD FMR to local market conditions.
Voucher tenants in this region can generally cashflow at the HUD FMR rate, given that the FMR is designed to reflect the average rent for a modest apartment in fair condition. This means that landlords who accept vouchers should be able to cover their costs and maintain a steady income without significant financial strain.
The median home value in ZIP 02238 is also not specified, which makes deriving a precise rent-to-price ratio difficult. Nonetheless, the high cost of living in the Boston metropolitan area suggests that the rental market is robust, even if the exact figures are unavailable. This implies that the rent-to-price ratio likely favors rental properties over home purchases, making it an attractive option for investors.
While the number of days on market (DOM) and the percentage of price cuts are not provided, these factors typically influence the rent-versus-buy decision. In a strong rental market, such as what might exist in ZIP 02238, potential homeowners may find it more economical to rent rather than buy, especially if they anticipate frequent price cuts and longer DOM periods when selling homes.
The strongest angle for investors in ZIP 02238 is stability. Given the consistent demand for rental properties and the fact that voucher tenants can cashflow at the HUD FMR, landlords can expect reliable and predictable returns on their investments. Additionally, the robustness of the rental market, even without specific data points, suggests that there is less risk of sudden downturns compared to areas with volatile real estate markets.
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.