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 |
|---|---|---|---|---|
| 2BR | $2,280 | $870,201 | 0.26% | F |
| 3BR | $2,860 | $1,847,585 | 0.15% | F |
| 4BR | $3,410 | $2,751,167 | 0.12% | F |
U.S. Census Bureau data (2024)
The ZIP code 02650, located in Chatham, MA, has a population of 1,032 residents, with only 9.3% being renters. This indicates that the area is primarily dominated by homeowners rather than renters, which suggests that the demand for housing vouchers, such as those provided under Section 8, is relatively low. Given the median household income of $66,548, it's essential to consider how this compares to the rental market.
In Chatham, the typical market rent is not specified, but we can infer that it is likely higher than the Fair Market Rent (FMR) of $1,980, which is set for FY 2024. The FMR serves as a benchmark for the maximum amount of rent that a Section 8 voucher holder can pay. If we assume that the average market rent exceeds the FMR, then a significant portion of local income would be consumed by rent, especially for those relying on Section 8 vouchers.
To illustrate, if the average market rent were 25% higher than the FMR, at approximately $2,475, this would represent about 37% of the median household income when considering annual rent costs. For voucher holders, the percentage of their income dedicated to rent is capped at 40%, meaning they would have a budget of roughly $768 per month towards rent based on the median income.
A landlord in Chatham should expect tenants who are financially constrained and rely heavily on housing assistance programs. These tenants will likely have a monthly rent budget that aligns closely with the FMR, making properties priced around $1,980 more attractive. It's important for landlords to understand that while the tenant pool may be smaller due to the low percentage of renters, the tenants they do attract will need to adhere strictly to the guidelines of the Section 8 program.
Given the homeowner-dominated nature of the area, landlords must be prepared to offer competitive rents that align with the FMR to attract Section 8 tenants. Additionally, they should be ready to undergo the necessary background checks and property inspections required by the program. Despite the challenges, providing affordable housing options can contribute positively to the community and ensure steady, government-backed rental payments.
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.