Location: Merrimack County, NH | Metro: Hillsborough County, NH (part) 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 | $1,230 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,780 | $405,126 | 0.44% | F |
| 3BR | $2,350 | $516,527 | 0.45% | F |
| 4BR | $2,560 | $591,327 | 0.43% | F |
U.S. Census Bureau data (2024)
The analysis of Section 8 real estate in ZIP code 03242, which encompasses Henniker, NH, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1760, while the Census ACS data indicates that the average market rent is $1081. This means there is a $679 difference, representing a 63% premium for voucher tenants over the open-market rate.
The disparity between these figures makes Henniker an attractive location for landlords and small-portfolio investors looking to maximize their yields. By accepting Section 8 vouchers, landlords can command rents that are substantially higher than what the local market would typically bear. This premium rental income can significantly boost the profitability of properties in the area.
In Henniker, where 35.5% of residents are renters and the median home value is $489,196, the median household income is $95,206. Given these economic conditions, the high FMR set by the government ensures that voucher holders can afford decent housing without placing undue financial strain on landlords. The government's rental subsidy effectively bridges the gap between what low-income families can afford and the higher rents landlords might charge.
This scenario presents an opportunity for landlords to earn a higher return on investment compared to renting at market rates. However, it also requires understanding the administrative and regulatory aspects of participating in the Section 8 program. Landlords must ensure compliance with HUD standards and be prepared to undergo annual inspections and rent certifications.
To summarize, the $679 premium, or 63% above the market rent, in Henniker, NH, positions it as a favorable environment for landlords who wish to capitalize on the Section 8 program. This premium allows landlords to achieve better yields, especially given the relatively high median home values and incomes in the area.
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.