Location: Cheshire County, NH | Metro: Cheshire 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 | $1,200 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,270 | $292,621 | 0.78% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 03609 in New York reveals two distinct scenarios based on the Fair Market Rent (FMR) and market rent figures.
Using the annualized 2BR FMR of $1,620 for fiscal year 2026, the implied gross yield can be calculated as follows:
In contrast, using the market rent figure of $1,074 from the Census ACS, the implied gross yield is:
The difference between these two gross yields highlights the disparity between government-set rental rates and market-driven ones. The FMR scenario suggests a higher potential income for landlords participating in the Section 8 program, but it's important to consider the broader context of the local housing market.
The median home value of $282,410 provides a baseline for property values in ZIP 03609. With a renter density of 30.8%, it's evident that a significant portion of the population relies on rental housing, including those who might qualify for Section 8 assistance. However, the lack of data regarding days on market (DOM) makes it difficult to assess the speed at which properties are rented out, a critical factor for cash flow analysis.
Given the renter density, the FMR gross yield of 5.7% appears more favorable for landlords willing to participate in the Section 8 program. This higher yield compensates for the administrative overhead and potential risks associated with subsidized housing. However, the market rent gross yield of 3.8% reflects the reality faced by many landlords in the area, indicating that actual returns might be lower without government subsidies.
In conclusion, while the FMR scenario offers a more attractive gross yield, the market rent figure is likely a more realistic expectation for landlords and small-portfolio investors in ZIP 03609, New York. Participation in the Section 8 program can enhance profitability, but it also comes with additional responsibilities and considerations.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.