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 | $1,490 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,500 |
| 4 Bedrooms | $2,820 |
| 5 Bedrooms | $3,271 |
| 6 Bedrooms | $3,664 |
| 7 Bedrooms | $3,957 |
| 8 Bedrooms | $4,155 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,500 | $652,949 | 0.38% | F |
| 4BR | $2,820 | $808,308 | 0.35% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 03823 is centered around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $2190, while the Census ACS reports the average market rent at $1574. This creates a gap of $616, or approximately 39%, where landlords can potentially benefit.
Given that the FMR exceeds the market rent, it is evident that voucher tenants can provide a higher yield compared to open-market tenants. The FMR, set by HUD, ensures that landlords receive a payment close to the average rent in the area, which is notably above what typical market conditions would offer. This means landlords can earn more per unit than they might otherwise, enhancing their investment returns.
In the broader context of ZIP 03823, only 17.1% of residents are renters, indicating a relatively low demand for rental properties. However, the median home value is high at $674,491, suggesting a generally affluent neighborhood. The median income of $148,365 further supports this, implying that most residents can afford higher rents or homeownership. Despite these factors, the lower market rent indicates that there may be a segment of the population that requires financial assistance to afford housing, making Section 8 vouchers particularly valuable.
The cost of housing voucher tenants below open-market rates is minimal in this scenario. Landlords accepting Section 8 vouchers in ZIP 03823 will receive the higher FMR rate, effectively subsidizing the difference between the FMR and the market rent. This makes the ZIP code an attractive option for landlords looking to maximize their rental income while participating in a government program designed to assist low-income families.
To summarize, the gap between FMR and market rent in ZIP 03823 presents a clear opportunity for landlords to increase their yields through the acceptance of Section 8 vouchers. With the FMR being significantly higher than the market rent, the financial benefits are substantial, and the risks are low given the local economic conditions.
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.