Location: Boston-Cambridge-Quincy, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
A skeptical investor might raise several concerns regarding investing in ZIP code 02558, specifically about the Fair Market Rent (FMR) of $2380 for the fiscal year 2024, the rental demand at 12.9%, and whether housing vouchers will keep pace with the market rents of $1,468.
Will FMR $2380 cover the mortgage on a home? The median home value in ZIP 02558 is approximately $436,500, based on recent data. To determine if the FMR will cover the mortgage, we need to consider the typical mortgage rates and terms. However, the specific mortgage amount is not provided in the data. Given the median home value, a potential mortgage could be substantial. A conservative estimate might suggest that the FMR would likely not cover the mortgage on a median-priced home, especially considering additional costs such as property taxes, insurance, and maintenance.
Is there enough renter demand at 12.9%? The rental demand percentage indicates that 12.9% of households in ZIP 02558 are renters. While this percentage may seem low, it is important to note that the actual number of renters depends on the total population of the area. Additionally, the demand for rentals can vary based on seasonal factors and the local economy. The data does not provide a comprehensive analysis of the rental market's dynamics, but the presence of a rental demand suggests there is interest in leasing properties, though the competition among landlords could be fierce.
Will vouchers keep pace with $1,468 market rents? According to Sperling's BestPlaces, the median home value in ZIP 02558 is significantly higher than the national average, indicating a potentially strong rental market. However, the data does not specify the average voucher amount or how it compares to the market rents. Typically, housing vouchers are adjusted annually based on the federal government's assessment of local rental markets. While this adjustment aims to ensure affordability, it may not always match the exact market rents due to various economic factors. Therefore, investors should expect some variability in how closely vouchers align with market rents.
In summary, while ZIP 02558 presents opportunities for rental investment, the data suggests caution is warranted regarding covering mortgage costs with FMR and the adequacy of housing vouchers compared to market rents. The rental demand at 12.9% indicates interest, but further investigation into the local rental market conditions is advisable.
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.