Location: Nashua, NH | Metro: Manchester, 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 | $1,710 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,460 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,480 |
| 5 Bedrooms | $4,037 |
| 6 Bedrooms | $4,521 |
| 7 Bedrooms | $4,883 |
| 8 Bedrooms | $5,127 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,980 | $252,696 | 0.78% | D |
| 2BR | $2,460 | $389,026 | 0.63% | D |
| 3BR | $3,180 | $555,551 | 0.57% | F |
| 4BR | $3,480 | $692,099 | 0.5% | F |
| 5BR | $4,037 | $735,183 | 0.55% | F |
U.S. Census Bureau data (2024)
The ZIP code 03054, located in Merrimack, NH, presents an interesting scenario for both renters and landlords. The median household income here stands at $127,303, which places it above the national average. However, when considering the market rate for rent, which is set at $2,477 per month (ZORI), the picture becomes more nuanced.
To evaluate the affordability of renting in this area, we must consider the ratio of median income to the market rent. A monthly rent of $2,477 represents approximately 19.4% of the median annual income. This is generally considered affordable, as many financial advisors suggest that housing costs should not exceed 30% of a household's income. Yet, it is important to note that this leaves a significant portion of income allocated towards housing expenses, potentially limiting disposable income for other necessities.
Comparatively, the Housing Choice Voucher program, which is part of Section 8, offers a different payment standard. For ZIP 03054 in fiscal year 2024, the Fair Market Rent (FMR) is set at $2,260. This means that voucher holders can find units up to this price point, which is slightly below the market rate but still relatively high.
In terms of the overall rental market, only 11.1% of the population are renters, indicating a smaller pool of potential tenants. Given Merrimack's total population of 28,176, this equates to roughly 3,130 households that might be looking for rental properties. The affordability gap, where market rents are higher than what voucher programs cover, could lead to increased competition among landlords for tenants who can pay the market rate.
For landlords and small-portfolio investors, the decision between accepting voucher payments versus relying on cash-paying tenants depends largely on their investment goals and risk tolerance. Accepting vouchers guarantees a steady stream of income, albeit slightly lower than the market rate. On the other hand, focusing on cash-paying tenants could yield higher monthly returns, but may also come with the challenge of finding suitable tenants in a less dense rental market.
The takeaway is that while Merrimack has a relatively strong median income, the high market rent suggests that there is a noticeable affordability gap for some renters. Landlords should carefully weigh the benefits of guaranteed payments through the voucher program against the potential for higher income from market-rate tenants, keeping in mind the competitive landscape and the demographic profile of the area.
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.