Location: Merrimack County, NH | Metro: Merrimack County, NH
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 | $1,530 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $2,200 |
| 3 Bedrooms | $2,880 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,200 | $394,225 | 0.56% | F |
| 3BR | $2,880 | $588,573 | 0.49% | F |
| 4BR | $2,890 | $716,805 | 0.4% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 03106 in Hooksett, NH, are significant and must be carefully considered. Tenant turnover is a critical issue, as the market rent of $2,473 far exceeds the Fair Market Rent (FMR) of $1,850 for fiscal year 2024. This discrepancy can lead to higher tenant turnover, as voucher holders may struggle to afford the difference between the FMR and the market rent. Additionally, vacancy exposure is a concern due to the lack of available data on days on market (DOM), which indicates uncertainty regarding how quickly properties might fill. Landlords should also be prepared for deferred maintenance costs, considering the typical home value of $520,065 and the median income of $118,442. The cost of maintaining a property in this area may exceed the income generated by a Section 8 tenant, leading to financial strain.
However, these risks are tempered by the high renter share of 19.5%. High renter density generally correlates with higher demand for rental properties, including those that accept Section 8 vouchers. This suggests that there will likely be a steady pool of tenants interested in Section 8 housing, potentially mitigating the risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.