Location: Manchester, NH | Metro: Western Rockingham County, 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 | $1,520 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,770 |
| 4 Bedrooms | $2,780 |
| 5 Bedrooms | $3,225 |
| 6 Bedrooms | $3,612 |
| 7 Bedrooms | $3,901 |
| 8 Bedrooms | $4,096 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,530 | $208,290 | 0.73% | D |
| 2BR | $2,000 | $352,850 | 0.57% | F |
| 3BR | $2,770 | $440,927 | 0.63% | D |
| 4BR | $2,780 | $451,039 | 0.62% | D |
| 5BR | $3,225 | $512,411 | 0.63% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 03103, Manchester, NH, does not align favorably with the HUD's Fair Market Rent (FMR) standards. The FMR for the area in fiscal year 2024 is set at $1,610. However, the market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $1,857. This discrepancy means that landlords participating in the Section 8 program will have to accept a lower rental income compared to the local market rates.
Regarding acquisition affordability, the median home value in ZIP 03103 is $415,280. With an average of 11 days on the market (DOM) and only 0.2% of homes being listed with a price cut, it suggests that the real estate market is relatively stable and competitive. Home values are not excessively inflated, but the short DOM indicates strong buyer interest, which could drive up prices over time if demand continues to outpace supply.
Tenant demand in the area is robust. The total population of ZIP 03103 is 37,775, with a significant 50.7% of residents being renters. This high percentage of renters supports a strong market for rental properties, ensuring that there is a consistent pool of potential tenants looking for housing. Landlords can expect a steady stream of applications and reasonable occupancy rates.
In conclusion, while the rent math does not work in favor of landlords due to the disparity between the FMR and market rent, the acquisition costs remain within reasonable bounds given the median home value and market conditions. The high renter share of the population ensures a solid tenant demand, making ZIP 03103 a viable investment opportunity for those willing to navigate the challenges posed by the Section 8 payment standard. Landlords should be prepared to balance the benefits of stable tenant demand against the limitations of rental income stipulated by the HUD FMR.
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.