Location: Lawrence, MA | Metro: Lawrence, MA-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 | $1,410 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $2,050 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,050 | $514,683 | 0.4% | F |
| 3BR | $2,450 | $654,034 | 0.37% | F |
| 4BR | $2,710 | $756,796 | 0.36% | F |
U.S. Census Bureau data (2024)
The ZIP code 03841, located in Hampstead, NH, within the Lawrence, MA-NH HUD Metro FMR Area, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This area stands out as a potential cash-flow anchor due to the significant spread between the Fair Market Rent (FMR) and the actual market rent.
In fiscal year 2024, the FMR for ZIP 03841 is set at $1600. However, the current market rent for the area is lower, at $1420. This discrepancy means that landlords participating in the Section 8 program can secure rental income that exceeds the local market rate, providing a stable and potentially higher cash flow compared to non-subsidized rentals. The FMR is designed to cover the cost of renting modest housing, and in this case, it offers an additional buffer of $180 per unit over the median market rent, which can be particularly advantageous given the high median home value of $626,501 in the area. Such high property values often correlate with higher maintenance costs and potentially higher vacancy rates, making the guaranteed and above-market rental income from Section 8 a reliable financial anchor.
While there is no specific data on price-cut share or days on market (DOM), the higher FMR compared to market rents suggests that the Section 8 program can offer a steady income stream without the need to compete on price with other landlords. This stability is crucial for small-portfolio investors who might struggle with fluctuations in rental income and the costs associated with vacant units.
The median income in ZIP 03841 is $104,044, indicating a relatively affluent area where the demand for affordable housing could be strong. With a renter share of 13.9%, there is a notable portion of the population that might benefit from and seek out Section 8 housing. This makes ZIP 03841 a viable option for diversifying a real estate portfolio, especially if the goal is to balance higher-end investments with those that provide a more consistent cash flow.
In summary, ZIP 03841 is best positioned as a cash-flow anchor within a Section 8 portfolio strategy, thanks to the favorable spread between FMR and market rents, which ensures a steady and slightly above-average income for landlords participating in the program. This can be particularly beneficial in an area with high property values and potentially higher operational costs.
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.