Section 8 Fair Market Rent (FMR) for ZIP 03604 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 03604, located in New Hampshire, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1,930 per month for fiscal year 2026. This figure is specific to this ZIP code, reflecting local housing costs.

Section 8 operates on a formula where the government pays a portion of the rent, and the tenant pays another portion. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent and utilities. For example, if a tenant's adjusted monthly income is $1,500, they would pay $450 toward rent and utilities.

The voucher payment covers the difference between the tenant’s contribution and the SAFMR. In our scenario, the government would pay the landlord $1,480 ($1,930 - $450) for the remaining rent. Additionally, there are utility allowances that can vary based on the number of bedrooms and other factors. For a two-bedroom unit, the utility allowance might be around $300, which the government also pays directly to the landlord.

This brings the total reimbursement to the landlord to approximately $1,780 ($1,480 + $300) per month. If the market rent for a two-bedroom apartment in ZIP 03604 were higher than the SAFMR, landlords would face a shortfall. Conversely, if the market rent is lower, landlords could see a surplus.

In ZIP 03604, since the local market rent data is currently unavailable, we cannot definitively state whether there is a gap or surplus. However, if the market rent were indeed higher than the SAFMR, landlords would need to make up the difference. For instance, if the market rent was $2,200, the landlord would receive $1,780 from the voucher program, leaving a shortfall of $420 per month. On the other hand, if the market rent is lower, say $1,800, then the landlord would receive $1,780 from the voucher program, effectively covering the rent with only a minor surplus of $20 per month.

To accurately determine the reimbursement gap or surplus, landlords should compare the SAFMR to the actual market rents in ZIP 03604. This will provide a clearer picture of the financial implications of accepting a Section 8 voucher for a two-bedroom rental property.

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.