Location: Barnstable Town, MA | Metro: Barnstable Town, MA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,960 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,590 |
| 3 Bedrooms | $3,190 |
| 4 Bedrooms | $3,790 |
| 5 Bedrooms | $4,396 |
| 6 Bedrooms | $4,924 |
| 7 Bedrooms | $5,318 |
| 8 Bedrooms | $5,584 |
U.S. Census Bureau data (2024)
ZIP code 02542, located in Barnstable Town, MA MSA metro, serves as an ideal cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 02542 in fiscal year 2024 is set at $2,570, which stands notably higher than the market rent of $2,094. This $476 difference represents a significant spread that ensures landlords receive above-market rents through Section 8 vouchers.
The above-market rental rates provide a stable and predictable cash flow, crucial for maintaining financial health and covering operational costs such as maintenance, insurance, and property taxes. For a landlord or small-portfolio investor, this ZIP code offers a reliable source of income that surpasses what might be obtained in the open market, making it an excellent choice for anchoring a portfolio's cash flow.
Although data on median home values, price-cut shares, and days on market (DOM) are not available, the high FMR relative to market rent indicates that properties in ZIP 02542 can be rented out effectively under the Section 8 program without relying on potential future increases in property values or market rents. The strong cash flow generated from the higher voucher payments compensates for the lack of appreciation potential and provides a solid foundation for the portfolio.
Additionally, ZIP 02542 has a 100.0% renter share, meaning all homes are rented, and the median income is $62,083. These figures suggest a robust demand for rental housing, supporting the viability of the cash-flow anchor strategy. Landlords can expect consistent occupancy rates and less risk of vacancy, further stabilizing their cash flows.
In conclusion, ZIP 02542 is best suited as a cash-flow anchor in a Section 8 portfolio due to the substantial spread between the FMR and market rent, ensuring steady and above-market income for property owners. This strategy leverages the guaranteed rental income from the Section 8 program to offset any lack of capital appreciation, providing a secure financial base for landlords and small-portfolio investors.
Data Sources: FMR data from HUD (2027). 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.