Location: Coos County, NH | Metro: Coos County, NH
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
The Section 8 thesis for ZIP code 03589 in Unknown, NH, is contingent upon the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,290. However, the current market rent in ZIP 03589 is not available, which makes it challenging to calculate the exact gap in dollars and percentage. Despite this limitation, we can still provide insight into how the FMR impacts investment decisions.
In situations where the FMR exceeds the market rent, landlords can leverage this gap to generate higher yields. Voucher tenants, who receive rental assistance through the Section 8 program, can help fill units that might otherwise remain vacant due to lower market rents. This ensures a steady stream of income, even if the overall rent collected is below the FMR. For instance, if the market rent were significantly lower than $1,290, say $1,000, the difference would be covered by the government, making it financially viable to rent properties to voucher holders. This scenario transforms the investment into a yield play, maximizing returns based on the guaranteed payment structure of the vouchers.
Conversely, when the FMR is less than the market rent, landlords must consider the financial implications of accepting housing voucher tenants. The cost of renting below the open-market rate means sacrificing potential income. In ZIP 03589, without specific market rent data, we cannot quantify this loss precisely. Yet, it's crucial to understand that accepting Section 8 tenants at $1,290 could mean missing out on higher rents that the local market might support. This decision should be made carefully, considering the number of renters in the area, the median home value, and the median income, all of which are currently unknown.
To provide a complete analysis, additional data points such as the percentage of renters in ZIP 03589, the median home value, and the median income are necessary. These metrics will offer a clearer picture of the economic landscape in Unknown, NH, and how it aligns with the Section 8 program's financial framework.
Data Sources: FMR data from HUD (2027).
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.