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 | $3,130 |
| 1 Bedroom | $3,230 |
| 2 Bedrooms | $3,860 |
| 3 Bedrooms | $4,600 |
| 4 Bedrooms | $5,070 |
| 5 Bedrooms | $5,881 |
| 6 Bedrooms | $6,587 |
| 7 Bedrooms | $7,114 |
| 8 Bedrooms | $7,470 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,230 | $559,279 | 0.58% | F |
| 2BR | $3,860 | $844,553 | 0.46% | F |
| 3BR | $4,600 | $1,329,658 | 0.35% | F |
| 4BR | $5,070 | $2,197,610 | 0.23% | F |
| 5BR | $5,881 | $3,548,387 | 0.17% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 02445, located in Brookline, Massachusetts, within the Boston-Cambridge-Quincy, MA-NH HUD Metro FMR area, reveals several key insights. The HUD Fair Market Rent (FMR) for the zip code is set at $3940 for fiscal year 2024. In comparison, the Zillow Observed Rental Index (ZORI), which reflects actual market rents, stands at $4121. This indicates that voucher tenants will generally cashflow marginally when renting properties at the ZORI rate.
To further understand the dynamics, consider the median home value in the area, which is $1,223,137. By calculating the rent-to-price ratio, we find that it is approximately 0.32%, suggesting a strong alignment between rental income and property values. This ratio can be beneficial for investors looking to balance their investment portfolio between rental income and potential appreciation in property values.
The market conditions also favor quick turnover, with a median Days on Market (DOM) of just 11 days and a minimal 0.2% share of listings requiring price cuts. These factors indicate a robust rental market where demand outstrips supply, making it easier for landlords to maintain higher rental rates without significant concessions.
Investors should focus on the stability angle, given the consistent demand for rental properties and the slight premium that market rents command over the HUD FMR. This stability provides a reliable source of income and reduces the risk of vacancy, ensuring steady cash flow despite the marginal difference between market rents and HUD FMR.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.