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 | $1,870 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,460 |
| 3 Bedrooms | $3,080 |
| 4 Bedrooms | $3,670 |
| 5 Bedrooms | $4,257 |
| 6 Bedrooms | $4,768 |
| 7 Bedrooms | $5,149 |
| 8 Bedrooms | $5,406 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,460 | $682,136 | 0.36% | F |
| 3BR | $3,080 | $960,530 | 0.32% | F |
| 4BR | $3,670 | $1,296,365 | 0.28% | F |
| 5BR | $4,257 | $1,817,615 | 0.23% | F |
U.S. Census Bureau data (2024)
The potential downsides of investing in Section 8 properties in ZIP code 02556, located in Falmouth, Massachusetts, are significant. Firstly, tenant turnover poses a substantial risk. The market rent for properties in this area is approximately $2,339, while the Fair Market Rent (FMR) for FY 2024 is set at $1,940. This discrepancy means that landlords will have to accept a lower rental rate compared to the local market, which can lead to higher turnover as tenants might prefer non-subsidized housing that offers better amenities or locations.
Vacancy exposure is another critical concern. With the Days on Market (DOM) being N/A, it suggests there is no readily available data on how long properties typically remain vacant before securing a tenant. This lack of information can be problematic, as it makes it difficult to predict the time frame for filling vacancies, potentially leading to periods of non-income generation.
Deferred maintenance is also a notable risk. Given the typical home value of $1,029,535 and a median income of $121,810, there's a considerable gap between property values and household incomes. This disparity indicates that many residents may struggle to afford necessary repairs and maintenance, putting additional pressure on landlords to maintain properties at a higher cost than they might anticipate.
However, these risks must be weighed against the high concentration of renters in the area. The renter share stands at 14.1%, which is relatively high and suggests a robust demand for rental properties. High renter density often translates into a strong demand for Section 8 vouchers, which can provide a steady stream of tenants and mitigate some of the risks associated with vacancy and turnover.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 02556 is moderate. While there are significant challenges, particularly with tenant turnover and maintenance costs, the high renter density provides a buffer that can help stabilize the property's occupancy and income.
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.