Location: Merrimack County, NH | Metro: Western Rockingham County, 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 | $1,690 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $2,230 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $3,040 |
| 5 Bedrooms | $3,526 |
| 6 Bedrooms | $3,949 |
| 7 Bedrooms | $4,265 |
| 8 Bedrooms | $4,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,230 | $504,031 | 0.44% | F |
| 3BR | $3,030 | $615,589 | 0.49% | F |
| 4BR | $3,040 | $713,983 | 0.43% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 03037, which covers Deerfield, NH, in Rockingham County, can be broken down clearly. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1690. This figure represents the maximum amount that the federal government will reimburse landlords under the Housing Choice Voucher program for this specific ZIP code.
In contrast, the local market rent for a two-bedroom unit, according to Census ACS data, averages around $1593. This discrepancy between the SAFMR and the actual market rent is important for landlords to understand when deciding whether to accept a Section 8 voucher tenant.
A voucher typically covers the difference between the tenant's portion of the rent and the total rent, up to the SAFMR limit. Tenants are required to pay 30% of their adjusted income towards rent. If a tenant's income is $1,500 per month, for instance, they would contribute $450 towards the rent. The remainder, up to the SAFMR of $1690, would be covered by the government. In this example, the government would reimburse the landlord $1240 ($1690 - $450).
Utility allowances also factor into the equation. These allowances are designed to help cover the cost of utilities and are added to the base rent reimbursement. However, the exact amount of these allowances varies and must be considered alongside the SAFMR to determine the full reimbursement a landlord might receive.
Given the SAFMR of $1690 and the local market rent average of $1593, landlords accepting Section 8 tenants in ZIP 03037 will generally see a surplus in their rental income. The surplus is calculated by subtracting the local market rent from the SAFMR. In this case, the surplus is $97 per month. This means that even if a landlord charges the market average rent, they will still receive an additional $97 above the market rate due to the higher SAFMR set by the government.
To summarize, the economics of Section 8 in ZIP 03037 favor landlords, offering a guaranteed rent payment that exceeds the local market rate. Landlords should be aware of the SAFMR cap and the utility allowances when calculating their potential income from a Section 8 tenant. In practice, this means landlords can expect to receive the full SAFMR of $1690, minus the tenant's contribution based on their income, ensuring a stable and slightly above-market rental income.
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.