Location: Nashua, NH | Metro: Manchester, 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 | $2,050 |
| 1 Bedroom | $2,250 |
| 2 Bedrooms | $2,940 |
| 3 Bedrooms | $3,500 |
| 4 Bedrooms | $3,860 |
| 5 Bedrooms | $4,478 |
| 6 Bedrooms | $5,015 |
| 7 Bedrooms | $5,416 |
| 8 Bedrooms | $5,687 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,940 | $532,689 | 0.55% | F |
| 3BR | $3,500 | $683,713 | 0.51% | F |
| 4BR | $3,860 | $911,592 | 0.42% | F |
| 5BR | $4,478 | $1,180,042 | 0.38% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 03110, which covers Bedford, NH, centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $2,610, while the Zillow Rent Index (ZORI) indicates a market rent of $2,883. This means that the gap between FMR and market rent is $273, representing a 9.7% difference.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the potential costs associated with housing voucher tenants. The lower FMR rate can lead to reduced cash flow compared to what could be achieved renting at market rates. In Bedford, NH, where only 17.1% of residents are renters and the median home value is $762,283, it's crucial to consider the financial implications of accepting Section 8 vouchers.
The median income in Bedford, NH, is $167,418, suggesting a relatively affluent area. However, the presence of Section 8 voucher holders indicates a segment of the population that requires rental assistance. While the FMR provides a benchmark for affordability, it does not reflect the full market value, leading to a situation where landlords might have to accept lower rents than they could command in the open market.
To illustrate, if a landlord has a property that could rent for $2,883 based on market conditions, accepting a Section 8 voucher tenant would mean renting at $2,610 instead. This $273 shortfall must be factored into any investment decision. Additionally, landlords should be prepared for the administrative requirements and inspections that come with participating in the Section 8 program.
In summary, the FMR in ZIP 03110 is $273 below the market rent, representing a 9.7% discount. This gap can affect an investor’s yield and should be carefully considered alongside other local economic factors such as the median home value and income levels.
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.