Location: Western Rockingham County, 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 | $1,890 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,490 |
| 3 Bedrooms | $3,380 |
| 4 Bedrooms | $3,400 |
| 5 Bedrooms | $3,944 |
| 6 Bedrooms | $4,417 |
| 7 Bedrooms | $4,770 |
| 8 Bedrooms | $5,009 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,900 | $302,872 | 0.63% | D |
| 2BR | $2,490 | $414,901 | 0.6% | D |
| 3BR | $3,380 | $622,373 | 0.54% | F |
| 4BR | $3,400 | $775,187 | 0.44% | F |
| 5BR | $3,944 | $822,710 | 0.48% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 03053, which encompasses Londonderry, NH, stands at $134,038. This figure provides a benchmark against which we can assess the local rental market. The Census Bureau's American Community Survey (ACS) indicates that the market rate for rentals in this area is $1,838 per month. Given the median income, a household in Londonderry could reasonably afford this rent, assuming they allocate a typical portion of their income towards housing expenses.
However, when comparing the market rate to the Fair Market Rent (FMR) standards set for the Housing Choice Voucher program, the picture becomes more nuanced. For fiscal year 2024, the FMR in this zip code is set at $1,940. This means that while the market rate is slightly below the voucher payment standard, the difference is minimal, suggesting that voucher payments will cover the majority of market rents in Londonderry.
Londonderry has a relatively low percentage of renters at 13.5%, with a total population of 26,327. This low renter ratio implies a smaller pool of potential tenants who might be looking for affordable housing options. For landlords, this means that competition for tenants is likely to be less intense compared to areas with higher percentages of renters. However, it also suggests that there is a significant number of homeowners who have chosen to own rather than rent, possibly due to the availability of affordable home ownership options.
The affordability gap, where the median income comfortably exceeds both the market rate and the voucher payment standard, means that landlords have a strategic decision to make regarding their tenant mix. Accepting voucher tenants can provide a steady and reliable source of income, especially given that the voucher payment closely matches the market rate. On the other hand, landlords may find that cash-paying tenants, who are likely to be numerous given the high median income, offer flexibility and potentially higher rents without the administrative burden of managing voucher programs.
Takeaway for landlords:
In conclusion, the decision between voucher and cash-pay strategies should be informed by the local economic context and the landlord's business objectives. The slight disparity between the market rate and the voucher payment standard offers landlords an opportunity to tailor their approach according to their investment goals.
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.