Section 8 Fair Market Rent (FMR) for ZIP 03260 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,340
1 Bedroom	$1,480
2 Bedrooms	$1,940
3 Bedrooms	$2,560
4 Bedrooms	$2,570
5 Bedrooms	$2,981
6 Bedrooms	$3,339
7 Bedrooms	$3,606
8 Bedrooms	$3,786

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

None of the search results provide the median home value for ZIP code 03260. Given that the median home value is listed as N/A, we cannot calculate an exact cap rate for this area. However, we can still analyze the potential gross yield based on the available Fair Market Rent (FMR) for a two-bedroom unit, which is set at $2,150 annually for fiscal year 2026.

To derive the gross yield, we must first understand that the cap rate is calculated as the annual net operating income divided by the property's value. Since the median home value is unavailable, we will assume a hypothetical median home value to illustrate the calculation. Let’s consider a median home value of $250,000 for the sake of argument, though this figure is not derived from actual data for ZIP 03260.

The annualized Fair Market Rent for a two-bedroom unit is $2,150. If we were to use this as the rental income for the property, the gross yield would be calculated as follows:

• Gross Yield (FMR): ($2,150 / $250,000) * 100 = 0.86%

Note that this calculation assumes no other sources of income and does not account for expenses such as maintenance, insurance, and property taxes. The actual net operating income (NOI) would be lower, thus affecting the cap rate.

Given the 2.3% renter density in ZIP 03260, it is important to consider the likelihood of finding tenants willing to pay the FMR. A low renter density suggests that the competition for tenants might be high, potentially leading to vacancy rates that could affect the overall yield.

The N/A-day Days on Market (DOM) indicates that there is insufficient data to determine how quickly properties are rented out in this area. This makes it difficult to predict the stability of rental income and the time needed to find suitable tenants.

In conclusion, while the FMR provides a benchmark for rental income, the lack of market rent data and median home value makes it challenging to derive a precise cap rate. The hypothetical gross yield based on FMR is 0.86%, but investors should consider the low renter density and uncertain DOM when evaluating the feasibility of participating in the Section 8 program in ZIP 03260.

Data Sources: FMR data from HUD (2027). 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.