Location: Brockton, 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 | $390,830 | 0.68% | D |
| 3BR | $3,180 | $597,938 | 0.53% | F |
| 4BR | $3,510 | $732,325 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 02338, Halifax, MA, provides valuable insights into potential investment opportunities. To understand the gross yield, let's first look at the Federal Market Rent (FMR) and market rent figures.
The annualized 2BR FMR for FY 2024 is $2380. This translates to a monthly rental income of approximately $198.33. Given the median home value of $561,223, the implied gross yield based on the FMR would be about 3.8%. The calculation is as follows: ($2380 / $561,223) * 100 = 3.8%.
On the other hand, the market rent for a 2BR unit in Halifax, MA, is $1,804 annually, or roughly $150.33 per month. Using the same median home value, the implied gross yield based on market rent would be approximately 3.0%. The calculation is: ($1,804 / $561,223) * 100 = 3.0%.
Considering the 4.5% renter density in Halifax, MA, it becomes evident that the FMR scenario offers a higher gross yield compared to the market rent scenario. However, the decision between these two options should also take into account the days on market (DOM) and the specific needs of the investment portfolio. The N/A-day DOM suggests that there might be insufficient data to accurately predict the time it takes for properties to be rented out, which could affect the overall investment strategy.
In conclusion, while the FMR provides a higher gross yield at 3.8%, the actual market conditions, including renter demand and property turnover rates, must be carefully evaluated. Landlords and small-portfolio investors should consider the balance between yield and occupancy rates when making their investment decisions in ZIP 02338.
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.