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 |
In ZIP 02454, located in Waltham, MA, several concerns arise when considering investment in Section 8 properties. Let's address these objections with available data.
Will FMR $2870 (zip FY 2024) cover the mortgage on a home? The Fair Market Rent (FMR) for a 02454 home is set at $2870 for FY 2024. However, the median home price in the area is approximately $575,000 to $1,749,000, based on recent listings. Assuming a typical 20% down payment, the mortgage on a $575,000 home would be around $460,000. At a current average interest rate of 5%, the monthly mortgage payment would be roughly $2,450, which is lower than the FMR. But for a $1,749,000 home, even with a 20% down payment, the mortgage payment would exceed the FMR. Therefore, the FMR alone may not fully cover the mortgage for higher-priced homes in the area.
Is there enough renter demand at N/A%? The data does not provide a direct percentage for renter demand. However, Redfin reports that there are currently 124 homes for sale in ZIP 02454. This indicates a relatively active real estate market, but it does not specify the level of demand for rental properties. To fully assess demand, additional data on rental vacancy rates and tenant applications would be necessary.
Will vouchers keep pace with N/A market rents? The FMR for ZIP 02454 is $2870, which is the maximum amount a voucher holder can receive. However, the actual market rents can vary significantly. According to Redfin, the climate poses a major risk of flooding and wind events, which might affect the overall rental market dynamics. Without specific data on voucher adjustments and market rent fluctuations, it's challenging to definitively say whether vouchers will keep pace. Generally, HUD adjusts FMRs annually, but this may not always align with rapid changes in the local rental market.
The data provides a starting point but leaves some questions unanswered regarding specific percentages and trends. For a comprehensive analysis, further research on local rental vacancy rates and historical voucher adjustments would be beneficial.
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.