Location: Carroll County, NH | Metro: Belknap 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 | $1,420 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $2,950 |
| 5 Bedrooms | $3,422 |
| 6 Bedrooms | $3,833 |
| 7 Bedrooms | $4,140 |
| 8 Bedrooms | $4,347 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,980 | $555,650 | 0.36% | F |
| 3BR | $2,620 | $675,397 | 0.39% | F |
| 4BR | $2,950 | $1,244,833 | 0.24% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP 03226, Center Harbor, NH, might have several concerns regarding the viability of investing in rental properties, especially those eligible for Section 8. Here are some common objections and how the data addresses them.
Objection 1: Will Fair Market Rent (FMR) of $2,190 (metro FY 2026) cover the mortgage on a $719,381 home?
The FMR is the benchmark set by HUD for determining the maximum amount that a landlord can charge for a Section 8 rental unit. In Center Harbor, NH, the FMR stands at $2,190 per month. To determine if this will cover the mortgage on a median-priced home of $719,381, we need to calculate the monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly mortgage payment would be approximately $3,440. This means that the FMR alone does not cover the mortgage payment, leaving a gap of $1,250 per month.
Objection 2: Is there enough renter demand at 8.5%?
The rental vacancy rate in Center Harbor, NH, is 8.5%. This percentage indicates the proportion of rental units that are vacant at any given time. An 8.5% vacancy rate suggests a relatively balanced market, neither overly saturated with renters nor lacking them. However, it's important to note that the data does not provide specifics on the number of Section 8 tenants seeking housing. The overall rental vacancy rate gives us an idea of the general demand but not the specific demand for subsidized housing.
Objection 3: Will vouchers keep pace with the market rents?
The data provided does not specify whether the Section 8 voucher amounts in Center Harbor, NH, are increasing to match the rising market rents. It is crucial for landlords to understand that while FMRs are adjusted annually, they may not always align perfectly with local market conditions. Investors should monitor local housing authority announcements and trends to ensure that voucher payments remain competitive with the cost of living.
In conclusion, while Center Harbor, NH, presents a balanced rental market, the skepticism around covering mortgage payments with FMR and keeping pace with market rents is valid. Investors must consider supplementary income sources or evaluate the potential for rental increases outside of Section 8 parameters to offset these risks.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.