Location: Nashua, NH | Metro: Nashua, 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,980 | $254,251 | 0.78% | D |
| 2BR | $2,460 | $413,122 | 0.6% | F |
| 3BR | $3,180 | $554,192 | 0.57% | F |
| 4BR | $3,480 | $706,765 | 0.49% | F |
| 5BR | $4,037 | $733,638 | 0.55% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 03062, located in Nashua, New Hampshire, reveals a significant gap between the Fair Market Rent (FMR) and the market rent as measured by the Zillow Rent Index (ZORI). For fiscal year 2024, the FMR is set at $2040, while the ZORI indicates a market rent of $2,298. This means that landlords can expect a shortfall of $258 per unit if they choose to participate in the Section 8 program, representing a 12.3% discount from the market rate.
In Nashua, where 29.0% of residents are renters, and the median home value stands at $542,674, the decision to accept housing vouchers becomes a strategic choice for landlords. The median income in Nashua is $107,540, which suggests that many potential tenants might rely on assistance programs to afford housing. However, the discrepancy between FMR and market rent highlights the financial implications of accepting voucher tenants.
Accepting housing vouchers below the open-market rates poses a challenge for landlords aiming to maximize their rental income. The $258 difference translates into a substantial annual loss of $3,108 per unit, assuming a 12-month lease cycle. This cost must be weighed against the stability and security that Section 8 provides, including timely rent payments and federal oversight.
To contextualize this within Nashua's real estate landscape, consider that the lower FMR compared to the market rent reflects the federal government's attempt to make housing affordable for low-income families. In Nashua, with its relatively high median home values and incomes, the disparity is particularly notable. Landlords must decide whether the guaranteed rental income and reduced vacancy risk offered by Section 8 outweigh the financial penalty of renting below market rates.
Given the data, it is clear that landlords should carefully assess their property's location, condition, and potential for attracting non-voucher tenants before deciding to participate in the Section 8 program. While the program offers benefits such as stable cash flow and a broader pool of potential tenants, the financial impact of renting below the market rate cannot be overlooked.
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.