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 | $1,230 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,780 | $417,064 | 0.43% | F |
| 3BR | $2,350 | $481,532 | 0.49% | F |
| 4BR | $2,360 | $582,898 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 03216 in Andover, NH, reveals a favorable environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the Merrimack County, NH metro area in fiscal year 2026 is set at $1,870. This figure stands notably above the market rent average of $1,333 reported by the Census ACS, indicating that voucher tenants can indeed provide positive cash flow when renting at the FMR rate.
To further analyze the investment potential, consider the median home value in Andover, NH, which is $463,230. Using the HUD FMR of $1,870, the rent-to-price ratio comes out to be approximately 0.5%. This low ratio suggests strong rent-versus-buy dynamics, making rental properties more attractive compared to purchasing homes at current market values. However, the data does not provide specific information on the median days on market (DOM) or the percentage of price cuts shared, which would typically help gauge the urgency of renters versus buyers in the area.
The gap between the HUD FMR and the market rent indicates that landlords can expect marginal cash flow improvements even without premium units. With the FMR exceeding the market rent by over $500, landlords have room to negotiate and potentially increase rents closer to the FMR without losing tenants to the broader housing market.
In summary, the strongest investor angle in Andover, NH, for Section 8 investments is cash flow. Given the substantial difference between the HUD FMR and the current market rent, landlords can secure positive cash flow while still offering affordable housing options to voucher holders.
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.