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 | $355,505 | 0.5% | F |
| 3BR | $2,350 | $425,714 | 0.55% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 03230 in Danbury, NH, reveals a favorable environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the Merrimack County, NH metro area, as of fiscal year 2026, stands at $1,810. This figure significantly exceeds the market rent reported by the Census American Community Survey (ACS), which is $1,281. This gap indicates that voucher tenants can generate positive cash flow at the HUD FMR rate.
To further understand the investment potential, consider the median home value in the area, which is $383,648. Using this figure, we can calculate the rent-to-price ratio. With an average monthly rent of $1,281, the annual rent would be approximately $15,372. Dividing this by the median home value gives us a rent-to-price ratio of about 4%. This suggests that rental income represents a modest portion of the property's value, implying that the market leans towards stability rather than high appreciation.
The dynamics between renting and buying are critical in determining investment strategies. However, given the lack of specific data on the median Days on Market (DOM) and the percentage of price cuts, it's challenging to provide precise insights into these metrics. Nonetheless, the absence of such information does not detract from the strong cash flow potential offered by the current HUD FMR rates.
The strongest investor angle in this market is cash flow. Voucher tenants pay a higher rent than the market average, ensuring landlords maintain a positive cash flow even when considering property management costs and other expenses. This makes ZIP 03230 particularly attractive for those looking to generate consistent income through rental properties.
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.