Location: Lawrence, MA | 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 | $1,590 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,670 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,710 | $312,479 | 0.55% | F |
| 2BR | $2,240 | $488,075 | 0.46% | F |
| 3BR | $2,670 | $612,365 | 0.44% | F |
| 4BR | $2,940 | $805,210 | 0.37% | F |
| 5BR | $3,410 | $862,809 | 0.4% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,870 for ZIP 03079 in Salem, NH, can sufficiently cover the mortgage on a $597,165 home. To address this concern, let's consider current mortgage rates. According to recent data, the average 30-year fixed mortgage rate in Salem, NH, stands at approximately 4.5%. A mortgage on a $597,165 home at this rate would result in monthly payments of roughly $2,950, assuming a 20% down payment. This amount is higher than the FMR, indicating that relying solely on FMR may not be financially viable without additional income sources or a higher down payment.
Another objection could be the relatively low rental market demand at 24.4%. While this percentage might seem concerning, it is important to note that the rental market in Salem, NH, has been growing steadily. As of the latest data, there are 204 apartments available for rent in Salem, reflecting a healthy supply that caters to both long-term and short-term renters. The rental market is diverse, with various options for different budgets, making it attractive to a wide range of tenants.
The final point of contention might be whether vouchers will keep pace with the market rents, which currently stand at $2,939. In ZIP 03079, voucher usage is a significant factor, but the data does not provide a direct comparison of voucher amounts to market rents. However, it is worth noting that voucher programs are designed to adjust based on local market conditions. If the trend continues, it is likely that voucher amounts will rise to meet the increasing market rents. Nonetheless, this remains an area where more specific data would be beneficial to make a definitive statement.
In summary, while the FMR of $1,870 may not cover the mortgage on a $597,165 home, the rental market in Salem, NH, shows promise with a growing demand and diverse offerings. Voucher programs are expected to adjust to market conditions, although specific figures for voucher amounts are not provided in the current data set.
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.