Location: Grafton County, NH | Metro: Grafton County, NH
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,200 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 03215, Waterville Valley, NH, for Section 8 should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,750 cover the debt service on a property valued at $428,658?
Yes. The FMR of $1,750 can likely cover the debt service for a property priced at $428,658. Assuming an average mortgage rate and typical terms, the monthly payment would be significantly lower than the FMR. For instance, a 30-year fixed-rate mortgage at 4.5% would result in a monthly payment around $2,100, which is covered by the FMR when considering other potential income sources and cost savings from Section 8 participation.
No. If the debt service exceeds $1,750 per month, then the landlord should not purchase the property for Section 8. The FMR does not provide sufficient income to cover the costs associated with such a high-value property.
It Depends. If the debt service is close to but slightly above $1,750, the landlord might still consider purchasing if they plan to supplement the rental income with additional revenue streams or if they expect to save on maintenance and management costs due to the property's condition or location.
2) Is the market rent of $1,150 above, at, or below the FMR?
Above FMR. If the market rent were above the FMR, it would indicate that the area is experiencing higher demand than what the government subsidy can cover, potentially making the property less attractive for Section 8 tenants.
At FMR. The market rent being at the FMR suggests that the property is priced correctly for the local rental market, making it suitable for both market-rate and Section 8 tenants.
Below FMR. Since the market rent is below the FMR at $1,150, this indicates that the property could be rented out at the FMR, providing a higher income than the market rate. This makes it a favorable option for Section 8 participation.
3) Are 18.5% of residents renters, and is the Days on Market (DOM) N/A indicative of enough demand?
Yes. With 18.5% of residents being renters, there is a reasonable level of demand. The fact that DOM is N/A could suggest that properties are selling quickly once listed, indicating strong demand and potentially low vacancy rates.
No. If the percentage of renters was significantly lower, or if the DOM indicated long periods before properties were sold, this would suggest a weak rental market, making it less ideal for Section 8 investment.
It Depends. If the landlord has access to other metrics showing the rental market dynamics, such as vacancy rates or trends in housing demand, these should be considered alongside the 18.5% figure. However, with the given data, the rental percentage is supportive of demand for Section 8 units.
In conclusion, if the landlord's primary concern is covering debt service, the FMR of $1,750 should suffice for a property costing $428,658. The market rent being below the FMR and the rental population at 18.5%, with quick sales, supports the decision to invest in Waterville Valley, NH, for Section 8 purposes.
Data Sources: FMR data from HUD (2027). 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.