Location: Portsmouth-Rochester, NH | Metro: Western Rockingham County, 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 | $1,670 |
| 1 Bedroom | $1,770 |
| 2 Bedrooms | $2,310 |
| 3 Bedrooms | $2,800 |
| 4 Bedrooms | $3,100 |
| 5 Bedrooms | $3,596 |
| 6 Bedrooms | $4,028 |
| 7 Bedrooms | $4,350 |
| 8 Bedrooms | $4,568 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,770 | $395,942 | 0.45% | F |
| 2BR | $2,310 | $472,427 | 0.49% | F |
| 3BR | $2,800 | $615,640 | 0.45% | F |
| 4BR | $3,100 | $767,210 | 0.4% | F |
U.S. Census Bureau data (2024)
The ZIP code 03825, located in Barrington, NH, presents a unique balance between yield and stability that is worth examining for landlords and small-portfolio investors.
On the yield axis, the Federal Market Rent (FMR) for ZIP 03825 is set at $2,780 for fiscal year 2024. This is notably higher than the market rent of $1,867. Given the median home value of $573,100, the FMR provides a significant potential for rental income above the typical market rate, suggesting a relatively high yield opportunity.
Moving to the stability axis, the ZIP code shows a lower percentage of renters at 13.0%. While this might indicate less demand for rentals, the average household income of $110,323 suggests that residents have the financial capability to afford higher rents. However, the lack of data on days on market (DOM) could imply that there is insufficient information to fully assess the turnover rate and market liquidity, which are critical factors for stability.
Based on these figures, ZIP 03825 is best classified as a steady-cashflow zone. The high FMR relative to the market rent indicates good earning potential, but the low renter population percentage signals a need for careful tenant selection to ensure stable occupancy. The strong income levels provide a foundation for maintaining consistent rental payments, though the absence of DOM data leaves some uncertainty regarding the ease of finding tenants and the speed of property turnover.
To summarize, the potential for a high yield exists due to the favorable FMR, but it must be balanced against the moderate stability offered by the income levels and the unknowns surrounding rental market dynamics. This makes 03825 a promising area for investors who can manage a slightly more conservative approach to maximize returns while ensuring steady cash flow.
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.