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 |
|---|---|---|---|---|
| 2BR | $2,650 | $419,809 | 0.63% | D |
| 3BR | $3,180 | $518,830 | 0.61% | D |
U.S. Census Bureau data (2024)
The real estate landscape in Wareham, Massachusetts (ZIP 02538) presents a nuanced scenario for landlords and small-portfolio investors. With a median home value of $462,229, the market reflects a stable housing price environment. The fact that the percentage of listings reduced and the median days on market (DOM) are not available suggests a relatively steady market without significant fluctuations in listing prices or prolonged periods of unsold inventory. This stability can be interpreted as a sign of consistent demand and supply, which typically translates into a balanced market where neither buyers nor sellers have overwhelming pricing power.
On the rental side, the Forward Monthly Rent (FMR) for ZIP 02538 is set at $2,380 for fiscal year 2024, while the Census ACS data indicates an average market rent of $1,407. This substantial gap between the FMR and actual market rents signals an opportunity for landlords who can offer quality properties that meet or exceed FMR standards. Investors should focus on improving property conditions to justify higher rents, aligning with the FMR to capture the higher end of the rental market.
For long-term investors, the setup in Wareham suggests a moderate appreciation potential. The stable median home values indicate a low-risk investment area, but the lack of significant growth signals that rapid capital gains might not be likely. Instead, investors should consider the steady rental income as a primary source of return, given the disparity between FMR and current market rents. Improvements to properties can enhance their rental appeal and potentially increase their resale value over time, providing a realistic path to gradual appreciation.
The data implies that the market is poised for steady growth rather than sharp increases or decreases. Landlords and small-portfolio investors should capitalize on the rental dynamics by enhancing their properties to command higher rents. This strategy will ensure a robust cash flow and position them well for any future market shifts towards higher valuations.
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.