Location: Sullivan County, NH | Metro: Sullivan County, NH
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 | $1,340 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,610 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,910 | $303,597 | 0.63% | D |
| 3BR | $2,610 | $354,403 | 0.74% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering Lempster, NH (ZIP 03605) might have several concerns regarding the viability of investing in a Section 8 property. Here are some of those objections, along with insights based on the available data.
Objection 1: Will Fair Market Rent (FMR) of $2,040 (for the metro area in fiscal year 2026) be sufficient to cover the mortgage on a $309,764 home?
The answer is contingent upon the interest rate and loan terms. Assuming a standard 30-year fixed-rate mortgage, even at today's average interest rates, the monthly payment on a $309,764 home could exceed the $2,040 FMR. For instance, with an interest rate of 5%, the monthly mortgage payment would be approximately $1,680, which is manageable under the FMR. However, if interest rates rise, the mortgage payment could surpass the FMR, making it difficult to cover costs solely through rental income. It's crucial to consider these financial dynamics before committing to an investment.
Objection 2: Is there enough renter demand at 1.8%?
The 1.8% figure likely represents the share of renters in the local housing market. This percentage is quite low, indicating a smaller pool of potential tenants. Landlords and investors must weigh this against the broader demand for affordable housing. While the direct percentage suggests limited demand, the need for affordable housing can drive higher occupancy rates. Additionally, the attractiveness of the area to families and individuals seeking lower-cost living options can offset the low percentage of renters. Nonetheless, the data does point to a challenge in finding tenants, especially compared to areas with higher percentages of renters.
Objection 3: Will vouchers keep pace with market rents?
The data provided does not include information on the rate of increase for voucher amounts relative to market rents. Without this specific information, it's impossible to definitively state whether vouchers will maintain parity with market rents. Historically, voucher increases have often lagged behind inflation and rising market rents, potentially leading to a gap between what vouchers cover and what landlords might charge. Investors should monitor both voucher trends and local market rent fluctuations to ensure that they remain financially viable.
In summary, while Lempster, NH presents opportunities for Section 8 investments, particularly in covering mortgage payments at current interest rates, the low percentage of renters and uncertainty around future voucher adjustments pose significant challenges. Careful financial planning and ongoing monitoring of market conditions are essential for success.
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.