Section 8 Fair Market Rent (FMR) for ZIP 02464 - 2027

Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area

Investment Score for ZIP 02464

Monthly Rent (2BR)

$3,370

Median Price (2BR)

$709,004

1% Rule

0.48%

Annual Yield

5.7%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,730
1 Bedroom	$2,820
2 Bedrooms	$3,370
3 Bedrooms	$4,020
4 Bedrooms	$4,430
5 Bedrooms	$5,139
6 Bedrooms	$5,756
7 Bedrooms	$6,216
8 Bedrooms	$6,527

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$3,370	$709,004	0.48%	F
3BR	$4,020	$1,003,713	0.4%	F
4BR	$4,430	$1,320,997	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,833

Median Household Income

$105,729

Housing Units

1,581

Renter Percentage

39.4%

Occupancy Rate

94.6%

Renter Occupied

590

Newton, MA, represented by ZIP code 02464, is a vibrant suburban community just west of Boston, known for its excellent schools, diverse neighborhoods, and proximity to urban amenities. This area presents a robust rental market, attractive to both tenants and investors looking for stable returns.

The Fair Market Rent (FMR) for a two-bedroom apartment in Newton for fiscal year 2024 is set at $3,520.
The Zillow Observed Rental Index (ZORI) indicates that the average market rent for a similar unit is slightly higher at $3,600.
The median home value in Newton is $959,572, reflecting the area's affluent nature and strong property values.
Renters make up 39.4% of the population, suggesting a significant demand for rental properties.
The median household income in Newton is $105,729, which supports high rental rates and property values.

Given these data points, Newton offers a favorable environment for real estate investment, particularly in the rental sector. The close alignment between FMR and market rents signals a healthy and predictable market. High median home values and incomes indicate a strong economic base capable of sustaining high rents. With nearly 40% of residents renting, there is a consistent demand for rental properties, making Newton a reliable choice for landlords and small-portfolio investors seeking steady returns.

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.