Location: Sullivan County, NH | Metro: Sullivan County, NH
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,680 |
| 1 Bedroom | $1,840 |
| 2 Bedrooms | $2,390 |
| 3 Bedrooms | $3,310 |
| 4 Bedrooms | $3,790 |
| 5 Bedrooms | $4,396 |
| 6 Bedrooms | $4,924 |
| 7 Bedrooms | $5,318 |
| 8 Bedrooms | $5,584 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 03770 in New Hampshire might have several concerns regarding the feasibility of investing in this area, particularly in relation to the Fair Market Rent (FMR), renter demand, and the utility of housing vouchers. Let's address these concerns head-on using available data.
Objection 1: Will FMR of $2,420 (metro FY 2026) cover the mortgage on a $566,162 home?
The Fair Market Rent (FMR) of $2,420 for ZIP 03770 is indeed a critical figure for investors looking to cover their mortgage payments through rental income. However, the average price of homes in this area is around $529,100, which is slightly lower than the hypothetical $566,162 home mentioned. Assuming a conservative mortgage rate of 4%, the monthly mortgage payment on a $529,100 home would be approximately $2,400, very close to the FMR. This suggests that the FMR could effectively cover the mortgage payment, but investors must consider additional costs such as property taxes, insurance, and maintenance.
Objection 2: Is there enough renter demand at 9.6%?
The rental demand in ZIP 03770 is represented by a 9.6% rental rate. While this percentage might seem low, it's important to note that it reflects the proportion of renters in the overall housing market. In reality, the number of potential tenants is significant enough to sustain rental properties, especially given the relatively high median home value. The rental market in this area appears to be stable, with the FMR indicating a willingness among residents to pay higher rents. Investors should also look into the demographic trends and job market stability of the area to gauge future demand.
Objection 3: Will vouchers keep pace with $2,188 market rents?
The Housing Choice Voucher Program (Section 8) aims to help low-income families afford decent, safe, and sanitary housing. However, the data does not explicitly state whether the voucher amounts will keep up with the market rents of $2,188. According to HUD, Small Area FMRs can be used as a basis for setting exception payment standards, potentially up to 110% of the FMR. This means that in some cases, voucher holders might be able to cover the full market rent, but it depends on the specifics of the local housing authority's policies. Investors should verify the local rules and trends to understand how well vouchers align with actual market rents.
In conclusion, while the data points to a feasible investment scenario in ZIP 03770, particularly with the FMR covering most of the mortgage payment on an average-priced home, the rental demand and voucher utilization require further scrutiny. Local economic conditions and housing authority practices play a crucial role in determining the long-term viability of rental investments in this area.
Data Sources: FMR data from HUD (2027). 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.