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 | $2,560 |
| 1 Bedroom | $2,640 |
| 2 Bedrooms | $3,160 |
| 3 Bedrooms | $3,770 |
| 4 Bedrooms | $4,150 |
| 5 Bedrooms | $4,814 |
| 6 Bedrooms | $5,392 |
| 7 Bedrooms | $5,823 |
| 8 Bedrooms | $6,114 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,640 | $432,270 | 0.61% | D |
| 2BR | $3,160 | $645,063 | 0.49% | F |
| 3BR | $3,770 | $857,519 | 0.44% | F |
| 4BR | $4,150 | $957,291 | 0.43% | F |
| 5BR | $4,814 | $1,048,611 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 02453, located in Waltham, MA, offers a unique blend of moderate yield and relative stability for real estate investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $2,900, which is slightly below the market rent of $3,186. This indicates that while there is potential for above-average rental income, it is not significantly higher than what the market dictates. The median home value in the area is $814,605, suggesting that properties are moderately priced compared to other markets.
Stability in this market can be gauged by several factors, including the percentage of renters, the average days on market (DOM), and the median household income. In ZIP 02453, approximately 56.6% of residents are renters, indicating a reasonable demand for rental properties. However, the lack of data on days on market suggests that there may be some volatility in property turnover. The median household income is $115,366, which supports a stable rental market but also implies that tenants may have the financial means to seek homeownership, potentially affecting long-term occupancy rates.
To classify this market, we must consider both yield and stability. The yield is moderately high, given the FMR and market rents, but the stability is somewhat compromised due to the lack of DOM data and the relatively high median home value. This makes ZIP 02453 neither a high-yield/low-stability flip-style market nor a purely steady-cashflow zone. Instead, it falls into a middle category where investors can expect decent returns but should also be prepared for some variability in occupancy and rental rates.
In conclusion, for landlords and small-portfolio investors, ZIP 02453 presents an opportunity for moderate yields, with a rental income potential of around $2,900 to $3,186 per month, balanced against a market that has some inherent stability due to the significant portion of renters and solid household incomes. However, the high home values and potential for fluctuating occupancy rates mean that this market requires careful management and strategic planning to maximize returns and maintain consistent cash flow.
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.