Location: Grafton County, NH | Metro: Grafton 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 | $1,840 |
| 1 Bedroom | $1,850 |
| 2 Bedrooms | $2,430 |
| 3 Bedrooms | $3,290 |
| 4 Bedrooms | $3,340 |
| 5 Bedrooms | $3,874 |
| 6 Bedrooms | $4,339 |
| 7 Bedrooms | $4,686 |
| 8 Bedrooms | $4,920 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,850 | $345,218 | 0.54% | F |
| 2BR | $2,430 | $514,439 | 0.47% | F |
| 3BR | $3,290 | $957,656 | 0.34% | F |
| 4BR | $3,340 | $1,277,704 | 0.26% | F |
| 5BR | $3,874 | $1,805,188 | 0.21% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 03755, which encompasses Hanover, NH, in Grafton County, hinge on understanding the difference between the Subsidized Area Fair Market Rent (SAFMR) and the local market rent. For a two-bedroom apartment in this ZIP code during fiscal year 2026, the SAFMR is set at $2,690. This figure represents the maximum amount a landlord can charge for rent while still being covered by the subsidy program.
In contrast, the local market rent for a two-bedroom unit, based on Census American Community Survey (ACS) data, stands at $2,253. This indicates that the local rental market is below the subsidized rate, which can be advantageous for landlords participating in the Section 8 program.
A landlord's actual reimbursement under a Section 8 voucher program involves several components. The voucher pays up to the SAFMR, but the tenant is responsible for a portion of the rent, typically around 30% of their income. Additionally, there are utility allowances that vary by region and can add to the total reimbursement. For ZIP 03755, let's assume the tenant contributes 30% of their income towards rent, and the utility allowance is $200 per month. If we consider a median household income scenario where the tenant's contribution might be approximately $600, then the total reimbursement would be the sum of the tenant's payment plus the utility allowance, capped at the SAFMR of $2,690.
To illustrate, if the landlord charges the full SAFMR of $2,690, and the tenant pays $600, the voucher would cover the remaining $2,090, plus an additional $200 for utilities, making the total reimbursement $2,290. However, since the local market rent is lower at $2,253, landlords should ensure that the total rent and utilities do not exceed the tenant's ability to pay their portion plus the utility allowance.
The typical reimbursement gap or surplus in this scenario would be a surplus, meaning the landlord could receive more than the local market rent. Given the SAFMR of $2,690 and the local market rent of $2,253, the surplus would be $437 per month, assuming the landlord charges the maximum allowed under the Section 8 program and the tenant's income allows them to contribute the expected 30%. This surplus is significant and can provide a buffer against potential maintenance costs or vacancies.
Landlords should also be aware that the SAFMR is specific to this ZIP code, ensuring that the rate reflects the local housing market conditions accurately. Participation in the Section 8 program can thus offer financial stability and predictability, especially in areas where market rents are lower than the subsidized rates.
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.