Location: Grafton County, NH | Metro: Grafton County, NH
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,280 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,880 for the fiscal year 2026 will sufficiently cover the mortgage payments on a $315,838 home. To assess this, we must consider the average mortgage payment. According to recent real estate data, the average monthly mortgage payment for a home priced at $315,838 with a 20% down payment and a 30-year fixed-rate loan at approximately 4% interest would be around $1,350. This figure is based on standard financial calculations and does not include property taxes or insurance. Given that the FMR is $1,880, it clearly exceeds the estimated mortgage payment, indicating that rental income can cover the mortgage and leave a margin for other expenses.
The second objection could be about the low renter demand indicated by the 0.6% rate. While this percentage suggests limited demand, it's important to note that the context of this statistic is crucial. The 0.6% likely refers to the vacancy rate, which is relatively low, suggesting a competitive rental market. However, the data does not provide a comprehensive picture of the actual number of renters or the occupancy rates over time, making it difficult to definitively conclude the level of demand. A thorough analysis would require additional data points such as historical occupancy rates and the number of rental units available in ZIP 03780.
The third concern pertains to whether Housing Choice Vouchers will keep pace with the market rents. Unfortunately, the data provided does not include specific information on voucher amounts or trends in ZIP 03780. Typically, voucher amounts are adjusted annually based on local market conditions, but without specific figures, it's challenging to make a direct comparison. It's advisable for investors to monitor local HUD announcements and adjust their expectations accordingly.
In summary, while the FMR of $1,880 appears to be sufficient to cover the mortgage on a $315,838 home, the low vacancy rate of 0.6% indicates a potentially strong rental market, though more data is needed for a definitive assessment. Lastly, the lack of specific voucher data makes it impossible to predict if they will keep up with market rents, highlighting the need for ongoing research and updates.
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.