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 | $3,110 |
| 1 Bedroom | $3,210 |
| 2 Bedrooms | $3,830 |
| 3 Bedrooms | $4,560 |
| 4 Bedrooms | $5,030 |
| 5 Bedrooms | $5,835 |
| 6 Bedrooms | $6,535 |
| 7 Bedrooms | $7,058 |
| 8 Bedrooms | $7,411 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,560 | $1,801,887 | 0.25% | F |
| 4BR | $5,030 | $2,157,031 | 0.23% | F |
| 5BR | $5,835 | $2,804,731 | 0.21% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 02468 in Newton, Massachusetts, on the yield and stability axes requires careful consideration of the provided data. With a Fair Market Rent (FMR) of $4,240 for fiscal year 2024, the market rent at $2,673, and an average home value of $2,143,103, the yield is significantly higher when comparing FMR to market rent. This indicates that there is potential for higher returns on investment through rental properties.
The stability of the market is also strong, given the average household income of $250,001. However, the low percentage of renters at 3.6% suggests that the majority of residents are homeowners, which might limit the rental market size. Despite this, the high income levels provide a strong foundation for stable tenancy.
To further clarify the market type, we need to consider additional factors such as days on market (DOM), which is not available in the provided data. Nonetheless, based on the available figures, ZIP 02468 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The significant gap between FMR and market rent supports a scenario where long-term rentals could generate reliable income, especially if targeting the high-income bracket.
Average home values are also quite high, indicating a robust property market with less likelihood of frequent price fluctuations. Therefore, while the yield is good, the overall stability of the market suggests it is more suited for steady, long-term cash flow rather than speculative flipping.
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.