Location: Portsmouth-Rochester, NH | Metro: Lawrence, 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 | $1,770 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,490 |
| 3 Bedrooms | $2,970 |
| 4 Bedrooms | $3,350 |
| 5 Bedrooms | $3,886 |
| 6 Bedrooms | $4,352 |
| 7 Bedrooms | $4,700 |
| 8 Bedrooms | $4,935 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,490 | $514,522 | 0.48% | F |
| 3BR | $2,970 | $593,568 | 0.5% | F |
| 4BR | $3,350 | $670,514 | 0.5% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 03042, located in Epping, NH, within the Portsmouth-Rochester, NH HUD Metro FMR Area, does not work favorably for landlords. The Federal Market Rent (FMR) for the area is set at $2080 for fiscal year 2024. However, the actual market rent, as per the Census ACS data, stands at $1,742. This discrepancy means that landlords relying on FMR to set rents will be overcharging compared to the local market rate, which could deter potential tenants.
Acquisition of properties in this ZIP code is relatively affordable. The median home value is $558,761. While the data does not provide days on market (DOM) or the percentage of homes that required price cuts, the median value suggests that purchasing a property here would be manageable for investors looking to enter the market without facing excessive upfront costs.
Tenant demand in ZIP 03042 is moderate. With a total population of 7,430, only 13.7% of residents are renters. This indicates that while there are tenants available, the majority of the housing market is composed of homeowners, which could limit the pool of potential rental income sources.
In summary, ZIP 03042 presents a challenging environment for landlords due to the mismatch between FMR and market rent. Acquisition costs are reasonable, but the limited renter base may pose difficulties in finding consistent tenants. Landlords should carefully consider these factors before investing in this area, as the high FMR could lead to vacancies if not adjusted to market conditions.
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.