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 | $1,670 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $2,200 |
| 3 Bedrooms | $2,760 |
| 4 Bedrooms | $3,290 |
| 5 Bedrooms | $3,816 |
| 6 Bedrooms | $4,274 |
| 7 Bedrooms | $4,616 |
| 8 Bedrooms | $4,847 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,200 | $593,908 | 0.37% | F |
| 3BR | $2,760 | $904,655 | 0.31% | F |
| 4BR | $3,290 | $1,473,768 | 0.22% | F |
| 5BR | $3,816 | $2,067,980 | 0.18% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 02638, which covers parts of Dennis, Massachusetts, presents a unique opportunity for landlords and small-portfolio investors due to the significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 02638 is set at $2050 for fiscal year 2024, while the Census ACS reports the average market rent at $1208. This means that the FMR is $842 higher than the market rent, representing an increase of approximately 70%.
This gap makes Dennis, MA an attractive area for landlords who can benefit from the guaranteed income provided by Section 8 vouchers, which cover the difference between the tenant's contribution and the FMR. In this case, landlords can potentially receive a higher rent than what the open market offers, turning it into a yield play. For instance, if a landlord charges $1208 per month, the voucher would cover the additional $842, bringing the total rental income to $2050, well above the local market rate.
However, it's important to note that accepting Section 8 tenants comes with its own set of considerations. In Dennis, where only 12.9% of residents are renters and the median home value is $949,151, landlords might find that the demand for rental properties is lower compared to areas with a higher percentage of renters. Additionally, the median income in Dennis is $108,726, indicating that most residents could afford to purchase homes rather than rent. These factors suggest that landlords should carefully evaluate the local rental market before committing to Section 8 tenancy.
If the FMR were to be lower than the market rent, it would indicate that landlords might have to accept a lower income than they could get from the open market. However, in Dennis, the FMR being higher than the market rent means that landlords can benefit financially from the program. This scenario also implies that the cost of housing voucher tenants is effectively subsidized by the government, allowing landlords to maintain a competitive rental rate while still receiving a higher income than typical market rents.
To summarize, the $842 or 70% gap between the FMR and market rent in ZIP 02638 makes it a lucrative option for landlords looking to maximize their yield through the Section 8 program. While the local context of Dennis, MA, with its low percentage of renters and high median home values, must be considered, the financial incentives of the program can outweigh these challenges for those willing to participate.
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.