Location: Lawrence, MA | Metro: Boston-Cambridge-Quincy, MA-NH 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 | $2,130 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,650 | $519,796 | 0.51% | F |
| 3BR | $3,180 | $598,866 | 0.53% | F |
| 4BR | $3,510 | $705,392 | 0.5% | F |
U.S. Census Bureau data (2024)
The market in ZIP 03858, encompassing Newton, NH, presents a dynamic landscape where the Federal Market Rent (FMR) stands at $2380 for the fiscal year 2024. This figure contrasts with the actual market rent reported by the Census American Community Survey (ACS), which is currently $1,683. The significant gap between these two values suggests that the federal guidelines are set higher than what the local market can bear, indicating potential challenges for landlords aiming to align their rental prices with government standards.
The median home value in Newton, NH, is notably high at $565,919, suggesting a robust real estate market overall. However, the lack of data on the percentage of homes sold with price cuts and the days on market (DOM) makes it difficult to definitively state whether supply outpaces demand or vice versa. Yet, the high median home value could imply strong demand for homeownership, potentially leading to increased rental costs as buyers compete for limited inventory.
The 9.9% renter share in the area indicates a relatively low proportion of residents who choose to rent over own. This statistic suggests that long-term housing pressure in Newton, NH, may be less pronounced compared to areas with higher renter shares. However, it also implies that any increase in rental rates could significantly impact the affordability for the existing renters, especially given the disparity between the FMR and the actual market rent.
To summarize, the market in ZIP 03858 is characterized by a strong homeownership trend, evidenced by the high median home value. The current rental market appears to be under federal guidelines that are not fully realized in practice, hinting at a potential struggle for landlords to maintain rents at FMR levels. Despite the low renter share, the dynamics between the FMR and the actual market rent suggest an environment where rental pricing must carefully balance between government recommendations and market realities.
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.