Location: Merrimack County, NH | Metro: Merrimack County, NH
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,270 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
U.S. Census Bureau data (2024)
To determine if you should buy a property in ZIP code 03307 (Loudon, NH) for Section 8, follow this decision tree:
1) Does FMR $2,000 (metro FY 2026) clear debt service on a $504,546 property?
Yes: The Fair Market Rent (FMR) of $2,000 is sufficient to cover the debt service on a property valued at $504,546. This indicates that the rental income from a Section 8 tenant would meet the financial obligations of owning the property.
No: The FMR of $2,000 does not clear the debt service on a $504,546 property. This means that the rental income from a Section 8 tenant would not be enough to cover the costs associated with owning the property, making it a poor investment for Section 8 purposes.
It Depends: If your property's debt service is lower than the FMR, then it could still be a viable investment. However, without specific debt service figures, it's impossible to give a definitive answer.
2) Is market rent $1,321 (Census ACS) above, at, or below FMR?
Above: If the market rent is higher than the FMR, you can consider renting the property outside of the Section 8 program for a higher income. In ZIP 03307, the market rent is $1,321, which is below the FMR of $2,000. Therefore, this scenario does not apply.
At: If the market rent equaled the FMR, you could still participate in the Section 8 program without sacrificing potential income. However, this is not the case in ZIP 03307, where the market rent is $1,321, less than the FMR.
Below: Since the market rent of $1,321 is below the FMR of $2,000, participating in the Section 8 program would provide a higher guaranteed rent compared to the local market rate. This makes the Section 8 program attractive for this ZIP code.
3) Are 10.3% renters + N/A-day DOM enough demand?
Yes: With 10.3% of the population being renters and assuming the days on market (DOM) is reasonable, there is likely enough demand for Section 8 properties in Loudon, NH. The percentage of renters suggests a stable pool of potential tenants.
No: If the percentage of renters is too low or the DOM is excessively high, indicating difficulty in finding tenants, then the demand for Section 8 properties would be insufficient. However, with 10.3% renters, this branch does not apply unless additional data shows high DOM.
It Depends: The percentage of renters is a positive sign, but without knowing the DOM, it's unclear how quickly properties are rented. If DOM is high, it may indicate challenges in finding tenants despite the percentage of renters. If DOM is low, then the demand is strong.
In summary, if the FMR of $2,000 clears the debt service on a $504,546 property and the DOM is low, then the answer is Yes. If the FMR does not clear the debt service, then the answer is No. If the FMR clears the debt service but the DOM is unknown or potentially high, the answer is It Depends.
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.