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 | $2,860 |
| 1 Bedroom | $2,950 |
| 2 Bedrooms | $3,530 |
| 3 Bedrooms | $4,210 |
| 4 Bedrooms | $4,640 |
| 5 Bedrooms | $5,382 |
| 6 Bedrooms | $6,028 |
| 7 Bedrooms | $6,510 |
| 8 Bedrooms | $6,836 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,530 | $798,449 | 0.44% | F |
| 3BR | $4,210 | $1,234,444 | 0.34% | F |
| 4BR | $4,640 | $1,584,061 | 0.29% | F |
| 5BR | $5,382 | $1,965,342 | 0.27% | F |
U.S. Census Bureau data (2024)
ZIP code 02460 in Newton, Massachusetts, stands out as a desirable residential area within Middlesex County. With a population of 10,099, it has a rental rate of 45.4%, indicating a significant portion of residents prefer leasing over homeownership. The median household income in this ZIP is $177,837, reflecting a relatively affluent community. The median home value is notably high at $1,365,584, underscoring the premium nature of the housing market.
The economic dynamics of Section 8 vouchers in ZIP 02460 are particularly interesting. For fiscal year 2024, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $3,200. In contrast, the market rent, as indicated by the Zillow Observed Rent Index (ZORI), is $3,565. This suggests that landlords can expect a slight shortfall when accepting vouchers, but the overall rental rates remain competitive within the local market.
The data signature for ZIP 02460 reads as stable. The high median income and home values indicate a robust economic foundation, which supports steady demand for both rental and owned properties. While the rental rate is substantial, the income levels suggest that residents have the financial capacity to sustain these rents, making it a reliable investment environment for landlords and small-portfolio investors.
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.