Location: Merrimack County, NH | Metro: Merrimack County, NH
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 | $1,290 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,880 | $421,220 | 0.45% | F |
| 3BR | $2,470 | $609,237 | 0.41% | F |
| 4BR | $2,480 | $741,246 | 0.33% | F |
U.S. Census Bureau data (2024)
Dunbarton, NH, located in ZIP code 03046, is a small town with a population of 3,097 residents. The area is predominantly owned, with only 4.9% of the population being renters. This indicates a community where homeownership is highly valued, suggesting a stable and possibly affluent environment. The median household income in the area is a robust $124,348, which is significantly higher than the national average, further supporting the notion of an economically strong community. The median home value in Dunbarton is $589,737, reflecting the high cost of living and the desirability of the area.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 03046 is set at $2,080 for the fiscal year 2026. However, the actual market rent, according to the Census American Community Survey (ACS), is considerably lower at $1,166 per month. This discrepancy between the FMR and the market rent presents a unique opportunity for landlords and small-portfolio investors involved in Section 8 housing. The gap allows for a potential profit margin when operating under the voucher program, as the government subsidy rate exceeds the local rental market rates.
The hands-off voucher operator would find this ZIP code advantageous due to the substantial difference between the FMR and the market rent. It ensures a steady stream of income without the need for extensive property management, as the voucher program covers most of the tenant's rent. On the other hand, a hands-on value-add buyer might also see potential in this area. With a high median income and home values, there is room to improve properties and increase their market appeal, potentially commanding rents closer to the FMR.
In summary, ZIP 03046 offers a niche market for Section 8 investments, with a low percentage of renters and a significant disparity between FMR and market rent. Investors can choose either a passive approach, benefiting from the generous voucher amounts, or an active strategy, enhancing properties to attract tenants willing to pay higher rents.
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.