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 | $1,730 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $2,280 |
| 3 Bedrooms | $2,860 |
| 4 Bedrooms | $3,410 |
| 5 Bedrooms | $3,956 |
| 6 Bedrooms | $4,431 |
| 7 Bedrooms | $4,785 |
| 8 Bedrooms | $5,024 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,740 | $424,450 | 0.41% | F |
| 2BR | $2,280 | $866,971 | 0.26% | F |
| 3BR | $2,860 | $1,283,601 | 0.22% | F |
| 4BR | $3,410 | $2,098,672 | 0.16% | F |
| 5BR | $3,956 | $3,734,014 | 0.11% | F |
U.S. Census Bureau data (2024)
To decide whether you should invest in ZIP 02633 (Chatham, MA) for Section 8 properties, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1980 cover the debt service on a property costing $1,307,764?
No. The FMR of $1980 does not sufficiently cover the debt service on a property valued at $1,307,764. Debt service includes mortgage payments, property taxes, insurance, and maintenance costs, which would likely exceed this amount. Proceed to the next question only if you can secure a lower-cost property or if other factors significantly outweigh this financial constraint.
It depends. If your target property is less expensive, the FMR might be adequate to cover the debt service. However, given the typical property values in Chatham, MA, this scenario is less common. Evaluate the specific property's cost against the FMR before making a decision.
2) How does the market rent of $1,471 compare to the FMR?
Below FMR. The market rent of $1,471 is below the FMR of $1980, indicating that Section 8 tenants could potentially pay more than what the market offers. This makes Section 8 a relatively attractive option for rental income stability, especially if you aim to maintain a steady cash flow.
At or Above FMR. If the market rent were at or above the FMR, it would suggest that non-Section 8 tenants might offer competitive or higher rental rates. In such a case, consider the trade-offs between the ease of collecting Section 8 rents versus the potential for higher market-based rents.
3) Is there enough demand with 15.9% of residents being renters and an unknown number of days on the market (DOM)?
Yes. With 15.9% of residents renting, there is a reasonable demand for rental properties in Chatham, MA. While the exact DOM is not available, a significant portion of renters suggests a viable market for Section 8 properties. However, ensure that the local housing authority has sufficient vouchers and is actively placing tenants.
No. If the demand is too low, or if the housing authority has limited availability of vouchers, then investing in Section 8 properties may not be ideal. Consider areas with higher rental demand or consult local real estate experts for insights into the voucher program's efficiency.
It depends. The lack of DOM data introduces uncertainty about how quickly properties are rented. Investigate further to understand the vacancy rate and the housing authority's placement speed. If the housing authority efficiently places tenants and the vacancy rate is low, the investment could still be worthwhile despite the unknown DOM.
In conclusion, the viability of purchasing a Section 8 property in ZIP 02633 hinges on the property's cost relative to the FMR, the comparison between market rents and FMR, and the overall demand for rentals. Ensure that the property's price aligns with the FMR and that the local housing authority supports a robust Section 8 program.
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.