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 | $3,350 |
| 1 Bedroom | $3,460 |
| 2 Bedrooms | $4,130 |
| 3 Bedrooms | $4,920 |
| 4 Bedrooms | $5,430 |
| 5 Bedrooms | $6,299 |
| 6 Bedrooms | $7,055 |
| 7 Bedrooms | $7,619 |
| 8 Bedrooms | $8,000 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $4,130 | $969,353 | 0.43% | F |
| 3BR | $4,920 | $1,284,508 | 0.38% | F |
| 4BR | $5,430 | $1,715,736 | 0.32% | F |
| 5BR | $6,299 | $2,365,687 | 0.27% | F |
U.S. Census Bureau data (2024)
The ZIP code 02421 in Lexington, MA, houses a population of 18,080 residents, with 24.1% being renters. This indicates that while there is a significant rental presence, it is not a renter-heavy area. The median household income stands at $227,813, which is notably high compared to national averages. For landlords and small-portfolio investors, understanding the dynamics of this market is crucial.
The typical market rent in ZIP 02421 is $3,275 per month. Given the median household income, this means that the average rent consumes approximately 14.3% of the monthly income. This figure suggests that most residents can afford the typical rent without financial strain, indicating a relatively stable and affluent tenant pool.
The Fair Market Rent (FMR) for ZIP 02421 as of FY 2024 is set at $4,240. This is higher than the actual market rent, suggesting that the rental market in Lexington is somewhat below the government's benchmark for fair market value. However, the discrepancy also implies that tenants receiving Section 8 vouchers might find it challenging to secure housing at the FMR level, leading to a potential scarcity of units available to them.
Landlords in ZIP 02421 should expect tenants who are financially capable of meeting their rental obligations. These tenants are likely to be employed in high-paying industries such as technology or healthcare, given the area's economic profile. While the number of Section 8 voucher holders seeking housing is present, it is not overwhelming. Therefore, landlords should focus on offering well-maintained properties that appeal to a broad range of renters, including those with vouchers, but should not solely rely on this tenant pool.
In summary, ZIP 02421 is an area with a substantial but not dominant rental market, where typical rents consume a reasonable portion of local incomes. The demand for Section 8 vouchers exists but is not as prevalent due to the high median income levels. Landlords should prepare for a mix of tenants, emphasizing quality and affordability to attract a diverse renter base.
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.