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 | $2,530 |
| 1 Bedroom | $2,610 |
| 2 Bedrooms | $3,120 |
| 3 Bedrooms | $3,720 |
| 4 Bedrooms | $4,100 |
| 5 Bedrooms | $4,756 |
| 6 Bedrooms | $5,327 |
| 7 Bedrooms | $5,753 |
| 8 Bedrooms | $6,041 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,120 | $841,238 | 0.37% | F |
| 3BR | $3,720 | $1,166,454 | 0.32% | F |
| 4BR | $4,100 | $1,560,199 | 0.26% | F |
| 5BR | $4,756 | $2,945,232 | 0.16% | F |
U.S. Census Bureau data (2024)
ZIP code 02465 is part of the affluent suburb of Newton, Massachusetts. With a population of 11,697, it represents a slice of Newton that is characterized by its high median income of $194,265 and substantial median home value of $1,401,722. The neighborhood is predominantly owner-occupied, with only 30.1% of residents being renters. This indicates a community where homeownership is highly valued, reflecting the area's upscale nature.
The rental economics in ZIP 02465 present an interesting opportunity. The Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD) for the fiscal year 2024 is $3,200, which is notably higher than the market rent reported by the Census Bureau's American Community Survey (ACS), currently at $2,270. This discrepancy suggests that properties participating in the Section 8 program can command higher rents compared to the general market, making it a lucrative option for landlords willing to navigate the HUD guidelines.
Given these conditions, ZIP 02465 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the guaranteed rent through the Section 8 program provides a stable income stream without the need for extensive property management. Meanwhile, hands-on buyers could leverage the higher FMR to improve properties and increase their rental value, thus maximizing returns while still benefiting from the security of government-backed rent payments.
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.