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 | $2,760 |
| 1 Bedroom | $2,850 |
| 2 Bedrooms | $3,400 |
| 3 Bedrooms | $4,050 |
| 4 Bedrooms | $4,470 |
| 5 Bedrooms | $5,185 |
| 6 Bedrooms | $5,807 |
| 7 Bedrooms | $6,272 |
| 8 Bedrooms | $6,586 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,400 | $735,288 | 0.46% | F |
| 3BR | $4,050 | $1,395,087 | 0.29% | F |
| 4BR | $4,470 | $1,748,944 | 0.26% | F |
| 5BR | $5,185 | $2,252,181 | 0.23% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 02478, Belmont, Massachusetts, reveals that the HUD Fair Market Rent (FMR) of $3290 for FY 2024 exceeds the Zillow Observed Rent Index (ZORI) of $3,004. This indicates that voucher tenants will generally provide positive cash flow in this area, as the FMR is higher than the typical market rent.
To further analyze the investment potential, consider the median home value of $1,459,511. The rent-to-price ratio can be calculated by dividing the annual rent ($3,004 * 12 months = $36,048) by the median home value. This results in a ratio of approximately 2.46%, which is relatively low compared to national averages. This suggests that rental income alone may not fully justify the purchase price of homes in Belmont, but it does highlight the strong underlying property values.
In terms of the broader real estate market, the N/A-day median Days on Market (DOM) and 0.1% price-cut share indicate a highly competitive and stable housing market. Properties sell quickly without significant price reductions, which supports the idea that the real estate in this area is consistently valued and sought after.
The strongest angle for investors in Belmont, MA, is likely to be stability. With a robust local economy and high demand for both rentals and homeownership, the likelihood of significant downturns is minimal. Additionally, the positive cash flow from voucher tenants and the high property values ensure a secure and predictable investment environment.
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.