Location: New Bedford, MA | Metro: New Bedford, MA HUD Metro FMR Area
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 | $1,250 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,610 | $389,886 | 0.41% | F |
| 3BR | $1,920 | $481,258 | 0.4% | F |
| 4BR | $2,440 | $504,095 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 02745, specifically New Bedford, Massachusetts, revolves around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1,450, while the Census American Community Survey (ACS) reports an average market rent of $1,139. This creates a significant gap of $311 per month, or approximately 27.4%, where landlords can potentially benefit.
The higher FMR compared to the market rent means that voucher tenants can afford to pay rents that are above the local market rate. This makes the area a yield play for landlords who participate in the Section 8 program. By renting properties to voucher holders, landlords can command higher rents without facing the typical constraints of the open market. In essence, the government subsidy effectively bridges the difference between the FMR and the actual market rent, allowing landlords to achieve better rental yields.
New Bedford's rental market context further supports this analysis. With 39.4% of residents being renters and a median home value of $447,278, the city has a substantial number of individuals and families seeking affordable housing options. The median income of $74,034 suggests that many households rely on assistance programs such as Section 8 to manage their housing costs. Given these conditions, the higher FMR serves as a financial buffer for landlords, ensuring they receive a fair rent even when the market rates are lower.
However, it is important to note that participating in the Section 8 program comes with its own set of regulations and requirements. Landlords must ensure compliance with HUD standards and may face limitations on rent increases. Despite these considerations, the financial advantage of closing the $311 monthly gap through voucher assistance makes it a compelling option for maximizing returns in the New Bedford rental market.
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.