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 | $2,580 |
| 1 Bedroom | $2,660 |
| 2 Bedrooms | $3,180 |
| 3 Bedrooms | $3,790 |
| 4 Bedrooms | $4,180 |
| 5 Bedrooms | $4,849 |
| 6 Bedrooms | $5,431 |
| 7 Bedrooms | $5,865 |
| 8 Bedrooms | $6,158 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,180 | $765,806 | 0.42% | F |
| 3BR | $3,790 | $1,178,105 | 0.32% | F |
| 4BR | $4,180 | $1,542,347 | 0.27% | F |
| 5BR | $4,849 | $2,213,536 | 0.22% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP 02494, Needham, MA, are significant. Tenant turnover is a primary concern, as the market rent stands at $3,413, while the Fair Market Rent (FMR) for FY 2024 is only $2,880. This disparity can lead to higher turnover rates, which are costly and time-consuming. Vacancy exposure is another issue, though the exact number of days on market (DOM) is not available, it's clear that the area's high market rents can translate into extended vacancy periods when tenants are hard to find. Additionally, the deferred maintenance risk is notable, with a typical home value of $1,347,526 and a median income of $179,720. Landlords should be prepared to handle maintenance costs that might exceed the income generated by Section 8 tenants.
However, these risks must be weighed against the high renter share of 27.8%. High renter density often indicates strong demand for rental properties, including those participating in the Section 8 program. This suggests that landlords are likely to have a steady stream of interested tenants, reducing the risk of prolonged vacancies. Furthermore, the presence of a substantial number of renters can help mitigate some of the financial pressures associated with lower rents and higher maintenance costs.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.