Section 8 Fair Market Rent (FMR) for ZIP 02780 - 2027

Investment Score for ZIP 02780

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,740
1 Bedroom	$1,750
2 Bedrooms	$2,300
3 Bedrooms	$2,760
4 Bedrooms	$3,320
5 Bedrooms	$3,851
6 Bedrooms	$4,313
7 Bedrooms	$4,658
8 Bedrooms	$4,891

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,750	$270,117	0.65%	D
2BR	$2,300	$398,399	0.58%	F
3BR	$2,760	$536,301	0.51%	F
4BR	$3,320	$614,358	0.54%	F
5BR	$3,851	$645,408	0.6%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 02780 (Taunton, MA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 02780 is set by HUD for the year 2026. For a two-bedroom unit, the FMR is $2,170, which represents 35.0% of the median household income of $74,471. This means that a significant portion of the population may struggle to afford housing without assistance. However, the actual rental market prices are much higher. The Zillow median price for a two-bedroom unit is $391,743, indicating a price-to-FMR ratio of 15.0x. This suggests that actual rents in the area are likely to be substantially above the FMR, creating a challenge for Section 8 voucher holders who can only pay up to the FMR amount. Landlords accepting Section 8 vouchers must therefore be willing to rent their units at rates significantly below the market value, which could impact their willingness to participate in the program. #### Affordability & Renter Profile With 41.0% of the population renting, Taunton has a substantial number of residents who rely on the rental market. Given the occupancy rate of 95.5%, it indicates a relatively tight market where demand is high relative to supply. The median household income of $74,471 suggests that while many residents can afford market-rate housing, a significant portion may still find it challenging due to the high price-to-FMR ratio. The FMR for a two-bedroom unit being $2,170 implies that renters receiving Section 8 vouchers would have limited options, especially if landlords are hesitant to accept lower rents. This tight market condition may lead to increased competition among renters, driving up rents further and potentially exacerbating affordability issues. #### Investor Angle From an investor perspective, the ZIP code 02780 presents a mixed picture. While the median household income is relatively stable at $74,471, the high price-to-FMR ratio of 15.0x indicates that properties are overpriced compared to what the average renter can afford through Section 8. An investor looking to generate cash flow through Section 8 tenants would need to ensure that their rental rates do not exceed the FMR. For a two-bedroom unit, this would mean setting the rent at $2,170 or less. Given the Zillow median price of $391,743, the potential cash flow would be modest unless the property can be acquired at a discount or managed efficiently to reduce costs. The investment grade in this ZIP code would likely be moderate to low due to the high cost of entry into the market and the limited ability to charge market rates when relying on Section 8 vouchers. Investors should carefully consider the financial feasibility of such investments, including the potential for reduced rental income and the challenges of finding willing landlords. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might find better opportunities in smaller units like one-bedroom apartments. The FMR for a one-bedroom unit is $1,650, which is still significantly below the market rate but offers a more manageable gap between FMR and actual rents. This could provide a better chance for cash flow and a more attractive investment proposition. 2. **Negotiate with Landlords**: Since the actual rents are much higher than the FMR, investors should work on negotiating with landlords to accept lower rents. This could involve offering incentives such as long-term leases or sharing in the appreciation of property values over time. Landlords who are willing to accept Section 8 vouchers at FMR rates will be crucial for maintaining a steady stream of tenants and ensuring the viability of the investment. 3. **Consider Subsidies and Grants**: Investors should explore additional subsidies and grants available to those who rent to Section 8 voucher holders. These programs can help bridge the gap between FMR and market rates, making the investment more financially viable. Researching local and federal programs that support affordable housing could provide valuable resources to enhance the profitability of such investments. #### Bottom Line For Section 8-focused investors, the ZIP code 02780 (Taunton, MA) is a challenging market due to the high price-to-FMR ratio and the limited number of units that can be rented at FMR rates. The recommendation is to **Skip** this ZIP code unless investors can secure properties at a significant discount or find ways to negotiate with landlords to accept lower rents. The tight market and high competition among renters make it difficult to achieve positive cash flow solely through Section 8 vouchers. Therefore, unless there are exceptional circumstances or additional subsidies available, investing in this ZIP code would likely result in suboptimal returns.

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.