Location: Portsmouth-Rochester, NH | Metro: Portsmouth-Rochester, NH HUD Metro FMR Area
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 | $1,730 |
| 1 Bedroom | $1,860 |
| 2 Bedrooms | $2,430 |
| 3 Bedrooms | $2,900 |
| 4 Bedrooms | $3,270 |
| 5 Bedrooms | $3,793 |
| 6 Bedrooms | $4,248 |
| 7 Bedrooms | $4,588 |
| 8 Bedrooms | $4,817 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,860 | $487,565 | 0.38% | F |
| 2BR | $2,430 | $613,306 | 0.4% | F |
| 3BR | $2,900 | $934,768 | 0.31% | F |
| 4BR | $3,270 | $1,219,483 | 0.27% | F |
| 5BR | $3,793 | $1,641,008 | 0.23% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP 03801 in Portsmouth, NH might have several concerns regarding the viability of investing in a Section 8 property here. Let's address these concerns directly with the available data.
Objection 1: Will FMR $2,300 (zip FY 2024) cover the mortgage on an $809,401 home?
The Fair Market Rent (FMR) for ZIP 03801 is set at $2,300 per month for FY 2024. To determine if this will sufficiently cover the mortgage on a home valued at $809,401, we must consider typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an interest rate of 5%, the monthly payment on such a loan would be approximately $4,260. This amount exceeds the FMR by nearly $1,960 per month. Therefore, relying solely on FMR to cover the mortgage would not be sufficient. However, this does not account for potential appreciation in property value over time or other sources of income, such as rental increases outside of the voucher program.
Objection 2: Is there enough renter demand at 47.0%?
The percentage of renters in ZIP 03801 is 47.0%. While this figure indicates a significant portion of the population is renting, it does not directly correlate to the demand for Section 8 properties. The data does not specify how many of these renters are participants in the Section 8 housing choice voucher program. However, the overall rental rate suggests a moderately healthy rental market, which could support a niche for affordable housing options like those offered under Section 8.
Objection 3: Will vouchers keep pace with $2,579 market rents?
The FMR for ZIP 03801 is $2,300, while the average market rent stands at $2,579. This gap between the FMR and the actual market rent is $279 per month. It is crucial to note that the Housing Choice Voucher program adjusts its payment standards periodically to reflect changes in the local housing market. However, the data does not provide a definitive forecast on future adjustments. Historically, vouchers have struggled to keep up with rising market rents, leading to situations where landlords may need to subsidize the difference or find alternative ways to manage their costs.
In conclusion, while ZIP 03801 presents a moderate rental market, the financial realities of the Section 8 program suggest that covering the mortgage on a high-value property strictly through FMR payments would be challenging. Investors should consider diversifying their portfolios and possibly seeking additional income streams to complement their Section 8 investments.
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.