Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,680 |
| 1 Bedroom | $2,760 |
| 2 Bedrooms | $3,300 |
| 3 Bedrooms | $3,930 |
| 4 Bedrooms | $4,340 |
| 5 Bedrooms | $5,034 |
| 6 Bedrooms | $5,638 |
| 7 Bedrooms | $6,089 |
| 8 Bedrooms | $6,393 |
U.S. Census Bureau data (2024)
The classification of ZIP 02459 in Newton, Massachusetts, hinges on its financial metrics related to rental yields and market stability. The Fair Market Rent (FMR) for a four-bedroom property in the area is set at $3,600 for fiscal year 2024. This figure contrasts with the market rent of $3,914, indicating a slightly higher potential for rental income above the FMR threshold. However, the median home value stands at a substantial $1,857,759, which places significant capital investment demands on any real estate venture.
Regarding stability, the ZIP code has a relatively low percentage of renters at 17.3%. This suggests that the majority of residents are homeowners, potentially leading to a less dynamic rental market. The days on market (DOM) average at 10 days, which is quite short, implying strong demand for available rentals. Additionally, the median household income is $227,594, providing evidence of a financially secure population capable of sustaining rental payments.
Based on these figures, ZIP 02459 leans towards being a steady-cashflow zone. The modest gap between the FMR and market rent indicates a reasonable yield without the extreme risk associated with high-yield markets. Furthermore, the short DOM and high median income suggest a stable tenant base, reducing the likelihood of frequent vacancies and ensuring consistent cash flow. While the median home value is high, this does not necessarily translate into low stability; it simply means that properties in this area require a larger upfront investment.
To summarize, the yield is moderate with the potential for slightly above-average rental income, while the stability is strong due to a robust local economy and quick property turnover. These factors collectively support an investment strategy focused on long-term, steady returns rather than high-risk, high-reward flips.
Data Sources: FMR data from HUD (2027). 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.