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 | $1,970 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,590 |
| 3 Bedrooms | $3,250 |
| 4 Bedrooms | $3,870 |
| 5 Bedrooms | $4,489 |
| 6 Bedrooms | $5,028 |
| 7 Bedrooms | $5,430 |
| 8 Bedrooms | $5,702 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,590 | $655,384 | 0.4% | F |
| 3BR | $3,250 | $940,084 | 0.35% | F |
| 4BR | $3,870 | $2,131,876 | 0.18% | F |
| 5BR | $4,489 | $4,723,688 | 0.1% | F |
U.S. Census Bureau data (2024)
In evaluating ZIP 02655, which encompasses parts of Barnstable, Massachusetts, several key concerns arise for landlords and small-portfolio investors regarding the Federal Market Rent (FMR) and rental market dynamics. The foremost objection is whether the FMR of $2040 for fiscal year 2024 will sufficiently cover the mortgage on a median-priced home valued at $1,205,892. This concern stems from the high cost of homeownership relative to rental income. However, it's important to note that the FMR is not intended to cover the entire cost of homeownership but rather to reflect the average market rent for a modest home in the area. To fully assess the viability of renting out such a property, one must consider additional factors such as the interest rate on the mortgage, property taxes, and maintenance costs.
A second common objection pertains to the level of renter demand in ZIP 02655. With only 7.2% of households being renters, some might question if there is sufficient demand to justify investing in rental properties. Despite the relatively low percentage of renters, the actual number of renter households can still be significant. According to recent data, there are approximately 1,300 renter households in ZIP 02655, indicating a viable market for rentals. Moreover, the rental market can be influenced by seasonal trends, particularly in areas with tourism, which could boost demand during peak seasons.
The final major concern is whether housing vouchers will keep pace with the market rents, currently averaging $1,869. This is crucial for landlords who rely on voucher programs to fill their units. While the FMR of $2040 suggests that voucher amounts may be close to market rates, it's essential to recognize that voucher values can vary based on individual circumstances and the type of assistance program. The data does not provide specific projections for voucher increases, so caution is advised when estimating future rental income. Nonetheless, the proximity of the FMR to the market rent indicates that voucher holders should generally be able to afford typical rental units without significant financial strain.
To summarize, while the FMR of $2040 might not fully cover the mortgage on a $1,205,892 home, it reflects the average market rent for modest homes. There is a substantial base of 1,300 renter households, suggesting a reasonable demand for rental properties despite the 7.2% rental rate. Lastly, while there is no guarantee that voucher amounts will match market rents, the current FMR of $2040 is close to the average market rent of $1,869, implying that voucher recipients can likely afford typical rental units in ZIP 02655.
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.