Location: Manchester, NH | Metro: Manchester, NH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,560 |
| 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 |
The analysis for ZIP code 03105 in New Hampshire focuses on deriving the Section 8 cap rate picture using available data. The Fair Market Rent (FMR) for a two-bedroom apartment in fiscal year 2024 is set at $1850 per month. This figure is crucial for understanding the rental income potential under the Section 8 program.
To calculate the implied gross yield, we must first annualize the FMR. An annualized FMR for a two-bedroom apartment would be $22,200 ($1850 x 12 months).
Unfortunately, the median home value for ZIP 03105 is not available, making it challenging to calculate an exact gross yield percentage. However, the lack of specific market rent data also hinders a direct comparison between Section 8 rents and market rates. Without these figures, it's impossible to determine if Section 8 rents are below, at, or above market rates.
Given the missing information on median home values and market rents, we cannot provide a precise cap rate or gross yield for properties in ZIP 03105. Typically, the gross yield would be calculated by dividing the annual rental income by the property value, but this calculation requires both the property value and a comparison point for market rents.
The data also lacks specifics on renter density and days on market (DOM), which are important indicators for assessing the likelihood of finding tenants willing to pay market rates versus those seeking Section 8 assistance. High renter density and short DOM periods generally suggest a robust rental market, where Section 8 rents might be less competitive. Conversely, lower renter density and longer DOM periods could indicate that Section 8 rents are more aligned with what tenants are willing to pay.
In conclusion, while the Section 8 FMR provides a clear monthly rental income benchmark at $1850, the absence of median home values and market rents means we cannot definitively state the implied gross yield. Investors should consider the broader context of the local rental market and the specific characteristics of their properties when evaluating the feasibility of participating in the Section 8 program.
Data Sources: FMR data from HUD (2027).
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.