Location: Barnstable Town, MA | Metro: Barnstable Town, MA MSA
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 | $1,660 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $2,180 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,260 |
| 5 Bedrooms | $3,782 |
| 6 Bedrooms | $4,236 |
| 7 Bedrooms | $4,575 |
| 8 Bedrooms | $4,804 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,670 | $576,506 | 0.29% | F |
| 2BR | $2,180 | $716,713 | 0.3% | F |
| 3BR | $2,730 | $1,064,719 | 0.26% | F |
| 4BR | $3,260 | $1,332,541 | 0.24% | F |
| 5BR | $3,782 | $2,070,645 | 0.18% | F |
U.S. Census Bureau data (2024)
The ZIP code 02540, located in Falmouth, Massachusetts, represents a mixed housing market but leans towards a significant renter population. With 34.9% of the residents being renters, it indicates a notable demand for rental properties, particularly those that cater to Section 8 tenants. The total population of 8,104 suggests a manageable number of potential tenants, making the area attractive for small-portfolio investors.
The median household income in Falmouth is $77,295, which provides context for understanding the affordability of rents. The market rent of $1,390 per month consumes approximately 18% of the median household income, indicating that while rent is a considerable expense, it remains within reasonable limits for most households. This figure is below the Fair Market Rent (FMR) of $1,840, set for FY 2024, suggesting that landlords can potentially offer slightly higher rents without significantly impacting the tenant pool's ability to pay.
In comparison to the FMR, landlords in Falmouth have an opportunity to adjust their rents upwards to align closer with the $1,840 benchmark, thereby maximizing their returns while still remaining competitive within the local market. However, the existing market rent at $1,390 implies that there is a segment of the population that relies on lower-cost rentals, likely including those who use Section 8 vouchers.
A landlord in Falmouth should anticipate a tenant profile characterized by individuals and families who benefit from Section 8 vouchers due to the significant portion of renters and the presence of a lower-income bracket. These tenants will be looking for affordable housing options that do not exceed their budgetary constraints, often seeking to pay no more than 30% of their income towards housing. Given the median income, a typical Section 8 tenant might have an income around $25,000 to $40,000, allowing them to comfortably afford a $1,390 monthly rent with a voucher supplementing the difference between their income and the fair market rent.
To conclude, 02540 is a viable location for landlords and small-portfolio investors interested in Section 8 tenants. The area has a substantial renter base and a median income level that supports the current market rent, positioning landlords well to attract tenants who utilize Section 8 vouchers. This tenant pool will consist primarily of low-income individuals and families who seek stable, affordable housing solutions within the community.
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.