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 | $2,610 |
| 1 Bedroom | $2,700 |
| 2 Bedrooms | $3,220 |
| 3 Bedrooms | $3,840 |
| 4 Bedrooms | $4,230 |
| 5 Bedrooms | $4,907 |
| 6 Bedrooms | $5,496 |
| 7 Bedrooms | $5,936 |
| 8 Bedrooms | $6,233 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,700 | $400,536 | 0.67% | D |
| 2BR | $3,220 | $759,763 | 0.42% | F |
| 3BR | $3,840 | $1,114,022 | 0.34% | F |
| 4BR | $4,230 | $1,340,406 | 0.32% | F |
| 5BR | $4,907 | $1,592,530 | 0.31% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 02474, specifically Arlington, MA, centers around the discrepancy between the Fair Market Rent (FMR) set at $3000 for fiscal year 2024 and the actual market rent, known as ZORI, which stands at $2682. This gap amounts to $318, representing a difference of approximately 11.85%. Given that the FMR exceeds the market rent, landlords can leverage this situation to increase their yields.
In Arlington, where 38.8% of residents are renters, the median home value is $1,071,057, and the median income is $150,560, the higher FMR allows landlords to charge rents that are closer to the government-set benchmark without losing tenants. The presence of voucher holders ensures a steady stream of rental income, which is particularly advantageous when the FMR is above the market rate. Landlords can thus benefit from a yield play, capturing the additional $318 per unit, without the risk of vacancy that might occur if they charged closer to the market rate of $2682.
This scenario presents an opportunity for landlords and small-portfolio investors to optimize their returns. The higher FMR also means that landlords are less likely to face the financial strain of having to accept lower rents than what the market would typically bear. In Arlington's context, where incomes and home values are relatively high, the demand for affordable housing supported by vouchers remains strong, making it a viable strategy for maximizing rental income while serving a segment of the population that benefits from subsidized housing.
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.