Section 8 Fair Market Rent (FMR) for ZIP 03257 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 03257

• Concord Housing Authority (Concord, NH) - 278 Section 8 vouchers
• Claremont Housing Authority (Claremont, NH) - 244 Section 8 vouchers

To determine if you should invest in ZIP 03257 (New London, NH) for Section 8 properties, follow these steps:

Step 1: Can the Fair Market Rent (FMR) of $2,460 cover the debt service on a property valued at $698,581?

• Yes. If your property's debt service is less than $2,460 per month, then the FMR can cover it. For instance, if you finance the property at a rate that keeps monthly payments under $2,460, you can break even or make a profit.
• No. If the debt service exceeds $2,460, investing in this ZIP code for Section 8 purposes would not be financially viable as the rental income would not cover the costs.

Step 2: Compare the market rent of $1,594 (from Census ACS) to the FMR.

• Market Rent Below FMR. If the market rent is below the FMR, there is potential to increase rents to the FMR level without losing tenants. This scenario suggests that Section 8 properties could be profitable as they offer higher guaranteed rental income compared to the market.
• Market Rent Equal to or Above FMR. If the market rent matches or exceeds the FMR, then the financial advantage of Section 8 properties diminishes. In such cases, landlords might prefer non-Section 8 rentals due to fewer administrative burdens.

Step 3: Evaluate the demand based on the percentage of renters and the days on market (DOM).

• Enough Demand. With 9.4% of residents being renters and the DOM listed as N/A, which often indicates low turnover or quickly leased properties, the demand appears sufficient. This means that finding tenants for Section 8 units should not be an issue.
• Insufficient Demand. If the DOM were high and the percentage of renters was lower, it would indicate difficulty in leasing properties. However, given the data, this is unlikely to be a concern in ZIP 03257.

In summary, if the debt service is covered by the FMR and the market rent is below the FMR, with sufficient tenant demand, then investing in ZIP 03257 for Section 8 properties is advisable. The key is to ensure that the financials align with the potential benefits of guaranteed rental income and manageable administrative overhead.

Data Sources: FMR data from HUD (2027). 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.