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 | $1,910 |
| 1 Bedroom | $1,930 |
| 2 Bedrooms | $2,520 |
| 3 Bedrooms | $3,160 |
| 4 Bedrooms | $3,770 |
| 5 Bedrooms | $4,373 |
| 6 Bedrooms | $4,898 |
| 7 Bedrooms | $5,290 |
| 8 Bedrooms | $5,555 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,930 | $305,542 | 0.63% | D |
| 2BR | $2,520 | $447,632 | 0.56% | F |
| 3BR | $3,160 | $599,805 | 0.53% | F |
| 4BR | $3,770 | $695,250 | 0.54% | F |
| 5BR | $4,373 | $1,354,592 | 0.32% | F |
U.S. Census Bureau data (2024)
The ZIP code 02601, located in Barnstable, Massachusetts, presents a unique challenge for renters given the local economic conditions and housing costs. The median income for households in this area stands at $61,143, which is significantly lower than the market rate for renting a home, set at $2,711 per month (ZORI).
To put this into perspective, let’s consider the financial strain on a typical household. Earning an average income of $61,143 annually means a monthly take-home pay of approximately $3,500, assuming a standard tax rate. However, when the rent alone consumes nearly 77% of this amount ($2,711), it leaves little room for other essential expenses such as utilities, groceries, transportation, and healthcare.
In comparison, the Housing Choice Voucher Program, commonly known as Section 8, offers a more affordable alternative. The Fair Market Rent (FMR) for ZIP 02601, as determined for fiscal year 2024, is $2,050 per month. This figure represents a significant reduction in rental cost, making it much more feasible for low-income households to find suitable housing.
Barnstable has a substantial rental market, with 47.8% of its 16,071 residents being renters. This high percentage indicates a robust demand for rental properties, but also suggests fierce competition among landlords to attract tenants who can afford the market rate. Given the affordability gap between the median income and the ZORI, many potential renters will likely be drawn to properties that accept vouchers, where the rent is closer to their budget.
Landlords considering their strategy should weigh the benefits of accepting vouchers against the cash-pay strategy. While cash-paying tenants might offer higher rents, the reality is that many in this ZIP code cannot afford the $2,711 market rate. On the other hand, voucher recipients provide a guaranteed and stable source of income through the government subsidy, ensuring that the $2,050 FMR is paid consistently.
The takeaway for landlords is clear: focusing solely on cash-paying tenants risks leaving units vacant due to the high cost of living in the area. By embracing a mix of both cash-pay and voucher-paying tenants, landlords can balance their portfolio and ensure steady occupancy rates while still taking advantage of higher market rents where possible.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.