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 | $2,900 |
| 1 Bedroom | $2,990 |
| 2 Bedrooms | $3,570 |
| 3 Bedrooms | $4,250 |
| 4 Bedrooms | $4,690 |
| 5 Bedrooms | $5,440 |
| 6 Bedrooms | $6,093 |
| 7 Bedrooms | $6,580 |
| 8 Bedrooms | $6,909 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,570 | $924,273 | 0.39% | F |
| 3BR | $4,250 | $1,323,205 | 0.32% | F |
| 4BR | $4,690 | $1,755,852 | 0.27% | F |
| 5BR | $5,440 | $2,493,176 | 0.22% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 02492, located in Needham, Massachusetts, does not work favorably for landlords. The Fair Market Rent (FMR) set at $2890 for the fiscal year 2024 is significantly lower than the actual market rent, which stands at $3,966 according to ZORI. This gap suggests that landlords might struggle to cover costs if they align their rents with the FMR guidelines.
Acquisition in this area is moderately affordable. With a median home value of $1,642,160, the investment cost is high but not prohibitive. The 17-day Days on Market (DOM) indicates a relatively quick sale process, and the low 0.1% price-cut share suggests that homes are selling close to their asking price, making it a stable market for acquisitions.
Tenant demand in ZIP 02492 is limited. The population of 21,424 has only a 10.5% renter share, meaning that approximately 2,249 residents are potential renters. Given the high median home value, it's likely that many of these potential tenants will be financially capable, but the overall number of renters is small compared to the total population.
In conclusion, while the acquisition process in ZIP 02492 is relatively straightforward and affordable, the mismatch between the FMR and market rent, combined with a low renter share, makes this area less attractive for landlords and small-portfolio investors. The financial viability of rental properties is compromised due to the lower FMR, and the limited tenant pool may pose challenges in maintaining occupancy rates.
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.