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 | $1,450 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,740 |
| 5 Bedrooms | $3,178 |
| 6 Bedrooms | $3,559 |
| 7 Bedrooms | $3,844 |
| 8 Bedrooms | $4,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,560 | $207,491 | 0.75% | D |
| 2BR | $2,040 | $406,051 | 0.5% | F |
| 3BR | $2,430 | $572,850 | 0.42% | F |
| 4BR | $2,740 | $703,521 | 0.39% | F |
| 5BR | $3,178 | $776,459 | 0.41% | F |
U.S. Census Bureau data (2024)
Dover, NH, with a ZIP code of 03820, is situated in a neighborhood characterized by a diverse mix of residents. The total population here is 33,440, indicating a moderate-sized community. Among these residents, 47.3% are renters, which suggests a significant portion of the local populace relies on rental housing. This rental-heavy demographic is complemented by a robust median household income of $94,897, reflecting a generally affluent area. The median home value stands at $537,679, further underscoring the economic status of the region.
Moving into the realm of rental economics, it's essential to consider the Federal Market Rent (FMR) and the Zillow Observed Rental Index (ZORI). For fiscal year 2024, the FMR for ZIP 03820 is set at $1,950. In contrast, the market rent, as measured by ZORI, is significantly higher at $2,244. This discrepancy indicates that landlords can potentially charge above the subsidized rates, benefiting from the difference between the FMR and market rent.
The financial landscape of ZIP 03820 makes it an attractive option for both hands-off voucher operators and hands-on value-add buyers. Voucher operators can rely on the steady flow of government-subsidized rents, ensuring a predictable income stream without the need for active property management. On the other hand, value-add buyers can capitalize on the gap between the FMR and market rent, improving properties and increasing their rental value to maximize profits. Given the strong local economy and high demand for rentals, both strategies have merit in this neighborhood.
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.