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 | $2,130 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,230 | $404,347 | 0.55% | F |
| 2BR | $2,650 | $696,246 | 0.38% | F |
| 3BR | $3,180 | $1,128,181 | 0.28% | F |
| 4BR | $3,510 | $1,359,619 | 0.26% | F |
| 5BR | $4,072 | $1,734,857 | 0.23% | F |
U.S. Census Bureau data (2024)
ZIP 02476, located in Arlington, MA, within the Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area, is best suited as a cash-flow anchor in a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) and the market rent for the area.
The FMR for ZIP 02476 in fiscal year 2024 is set at $2680, while the average market rent stands at $2,909. This means that landlords participating in the Section 8 program can expect a consistent, reliable income stream that is slightly below the market rate but still provides solid cash flow. The stability offered by the Section 8 program, combined with the relatively high market rents, makes this ZIP code an ideal choice for those looking to secure steady rental income without the risk associated with volatile markets.
Arlington's median home value is $1,097,626, indicating a strong local economy and a high cost of living. Despite the high median home value, the 0.1% price-cut share suggests that there is minimal competition among landlords, making it easier to maintain rental rates and fill vacancies. Additionally, the N/A-day DOM (Days on Market) implies that properties are rented quickly, reducing the likelihood of extended vacancy periods that could negatively impact cash flow.
While the 37.7% renter share and median income of $151,131 might suggest diversification opportunities, these factors are overshadowed by the strong cash-flow potential. The high median income supports the ability of residents to afford higher rents, even if subsidized, which further stabilizes the local rental market.
In conclusion, ZIP 02476 should be considered a cash-flow anchor due to the substantial difference between FMR and market rent, quick property turnover, and minimal competition. These characteristics ensure a predictable income source, which is crucial for landlords and small-portfolio investors aiming to balance their portfolios with stable, long-term investments.
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.