Location: Barnstable Town, MA | Metro: Barnstable Town, MA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,360 |
| 1 Bedroom | $2,380 |
| 2 Bedrooms | $3,110 |
| 3 Bedrooms | $3,910 |
| 4 Bedrooms | $4,650 |
| 5 Bedrooms | $5,394 |
| 6 Bedrooms | $6,041 |
| 7 Bedrooms | $6,524 |
| 8 Bedrooms | $6,850 |
U.S. Census Bureau data (2024)
The median home value in ZIP 02637, located in Cummaquid, Massachusetts, stands at approximately $679,777 according to recent data. This figure represents a significant increase over the past year, with a growth rate of 3.7%. However, the market rent for properties in this area is not readily available, making it challenging to provide a precise comparison against the Fair Market Rent (FMR) for a two-bedroom property, which is set at $2430 annually for Fiscal Year 2024.
To derive the gross yield for both scenarios, we must first consider the annualized FMR of $2430. Given the median home value, the implied gross yield for a Section 8 property would be around 0.36%, calculated as follows:
Gross Yield = Annual Rent / Median Home Value * 100
$2430 / $679,777 * 100 ≈ 0.36%
This yield is extremely low and reflects the limited financial benefit that landlords might see when renting to Section 8 tenants in ZIP 02637. The lack of available market rent data means we cannot calculate a gross yield for non-Section 8 rentals, but based on the typical premium of market rents over FMRs, the actual gross yield could be significantly higher if market rents were known.
Given the 0.0% renter density in ZIP 02637, it is clear that homeownership is the predominant form of housing in this area. Additionally, the N/A-day Days on Market (DOM) indicates that there is little to no rental activity, suggesting that landlords should carefully consider the potential returns before deciding to participate in the Section 8 program.
In conclusion, while the Section 8 program offers a guaranteed tenant base, the gross yield in ZIP 02637 is exceptionally low due to the high median home values. Landlords and small-portfolio investors should evaluate whether the stability of Section 8 tenants outweighs the low financial returns. For a more realistic investment scenario, market rent data is essential to determine a better gross yield comparison.
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.