Location: Sullivan 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 | $1,260 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $3,030 |
| 5 Bedrooms | $3,515 |
| 6 Bedrooms | $3,937 |
| 7 Bedrooms | $4,252 |
| 8 Bedrooms | $4,465 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,380 | $269,675 | 0.51% | F |
| 2BR | $1,810 | $342,132 | 0.53% | F |
| 3BR | $2,350 | $420,217 | 0.56% | F |
| 4BR | $3,030 | $484,782 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 03244, which encompasses Hillsborough, NH, hinges on the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for FY 2024 stands at $1,480, while the Census ACS reports the market rent at $1,241. This creates a gap of $239, representing a 19.2% difference between the two figures.
Given that the FMR exceeds the market rent, it suggests that landlords who accept Section 8 vouchers can potentially benefit from a higher yield on their investment properties. Voucher tenants pay a portion of their income towards rent, with the government covering the rest up to the FMR limit. In Hillsborough, NH, where the median income is $86,375, this means that voucher recipients will likely contribute a significant share of their rent directly, reducing the risk of vacancy and ensuring steady cash flow.
The median home value in Hillsborough, NH, is $386,772, indicating a relatively stable housing market. However, only 8.7% of residents are renters, suggesting a smaller pool of potential rental tenants. This makes the acceptance of Section 8 vouchers an attractive option for landlords, as it guarantees a tenant base willing to pay close to the FMR rate, thus maximizing rental income.
While accepting voucher tenants can lead to a higher yield, there are also costs associated with providing housing below the open-market rates. These include administrative burdens, such as dealing with the Housing Authority and ensuring compliance with program regulations, as well as potential maintenance issues due to the lower quality of some voucher units. Despite these challenges, the financial benefits often outweigh the drawbacks, making Section 8 a valuable component of the rental strategy in ZIP 03244.
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.