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 | $1,510 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,980 | $518,096 | 0.38% | F |
| 3BR | $2,430 | $666,214 | 0.36% | F |
| 4BR | $2,650 | $770,415 | 0.34% | F |
| 5BR | $3,074 | $809,723 | 0.38% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 03824, located in Durham, New Hampshire, is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1890, while the Census American Community Survey (ACS) indicates that the average market rent is $1429. This creates a gap of $461, which translates to approximately 32.2% above the market rate.
In this scenario, where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage the Section 8 program to achieve higher yields. The guaranteed payment from the government, covering the difference between the actual market rate and the FMR, ensures a steady income stream that is typically higher than what would be obtained through standard rental agreements. This is particularly advantageous given the local context of Durham, NH, where 35.6% of residents are renters, and the median home value stands at $681,338, reflecting a robust real estate market.
The median household income in Durham is $124,056, which suggests that the area is economically stable. However, it also implies that a significant portion of the population may rely on rental assistance programs such as Section 8 to afford housing. Landlords who participate in the Section 8 program can benefit from this situation, as they are able to charge rents that are closer to the FMR without the risk of vacancy due to the voucher system attracting tenants who might otherwise struggle to find affordable housing.
While the higher FMR provides an opportunity for increased returns, it's important to consider the administrative aspects of managing Section 8 properties. These include regular inspections, compliance with HUD standards, and potential limitations on rent increases. Despite these considerations, the financial advantage of receiving a rent subsidy that bridges the gap to $1890 per month makes Section 8 participation a compelling strategy for maximizing rental income in ZIP 03824.
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.