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 | $1,700 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,810 |
| 4 Bedrooms | $3,350 |
| 5 Bedrooms | $3,886 |
| 6 Bedrooms | $4,352 |
| 7 Bedrooms | $4,700 |
| 8 Bedrooms | $4,935 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,240 | $582,187 | 0.38% | F |
| 3BR | $2,810 | $763,044 | 0.37% | F |
| 4BR | $3,350 | $1,120,196 | 0.3% | F |
| 5BR | $3,886 | $1,254,310 | 0.31% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 02670, which covers parts of Dennis, MA, revolves around the disparity between the Fair Market Rent (FMR) set at $1840 and the actual market rent reported at $1,594 according to the Census ACS data for the fiscal year 2024. This gap amounts to $246, representing a 15.4% difference between what the government deems fair and the current market conditions.
Given that the FMR exceeds the market rent, this situation presents a unique opportunity for landlords and small-portfolio investors. Voucher tenants, who benefit from the Section 8 program, ensure a steady and reliable stream of income. Landlords can count on receiving the FMR rate of $1840 per month, which is higher than what non-voucher tenants might pay in the open market. This makes it a strong yield play, especially considering the rental market dynamics in Dennis, where only 17.1% of residents are renters. The high median home value of $693,192 and median income of $87,019 suggest that the rental market is relatively small compared to the homeownership market, making the stability provided by Section 8 vouchers particularly attractive.
The cost of housing voucher tenants below open-market rates is minimal for investors in this area. By participating in the Section 8 program, landlords can avoid the risks associated with finding and retaining tenants in a tight rental market. They also benefit from the government's guarantee of timely payments, reducing the likelihood of unpaid rent and the associated costs of eviction and vacancy. Moreover, the program offers annual rent increases tied to inflation, ensuring that landlords' income keeps pace with rising costs.
In summary, the gap between the FMR and market rent in ZIP 02670 makes Dennis, MA an attractive investment for those willing to take on Section 8 tenants. The yield advantage of $246 per unit translates into a significant financial edge over the local rental market, making it a smart move for savvy real estate investors looking to capitalize on stable returns in a niche but lucrative segment of the rental market.
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.