Section 8 Fair Market Rent (FMR) for ZIP 03842 - 2027

Location: Portsmouth-Rochester, NH | Metro: Portsmouth-Rochester, NH HUD Metro FMR Area

Investment Score for ZIP 03842

F
Monthly Rent (2BR)
$2,240
Median Price (2BR)
$521,270
1% Rule
0.43%
Annual Yield
5.16%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,590
1 Bedroom$1,710
2 Bedrooms$2,240
3 Bedrooms$2,670
4 Bedrooms$3,010
5 Bedrooms$3,492
6 Bedrooms$3,911
7 Bedrooms$4,224
8 Bedrooms$4,435

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,710 $274,050 0.62% D
2BR $2,240 $521,270 0.43% F
3BR $2,670 $716,484 0.37% F
4BR $3,010 $932,361 0.32% F
5BR $3,492 $1,071,835 0.33% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
16,324
Median Household Income
$95,422
Housing Units
10,199
Renter Percentage
26.0%
Occupancy Rate
76.6%
Renter Occupied
2,030

The Fair Market Rent (FMR) for ZIP code 03842, which includes Hampton, NH, is set at $2050 for fiscal year 2024. This figure represents the maximum amount that a landlord can receive through the Section 8 program for a unit in this area. It's important to note that this is not the rent you will charge your tenant; rather, it is the payment standard used by the housing authority to determine the subsidy amount.

To put this into perspective, the Zillow Observed Rent Index (ZORI) for ZIP 03842 stands at $2,038. This indicates that the market rent is slightly below the FMR, making it a competitive price point for Section 8 participants. However, the actual rent you set should not exceed the FMR if you want to participate in the program.

In Hampton, NH, 26.0% of the population are renters. This suggests there is a steady demand for rental properties, particularly those that cater to lower-income individuals who might benefit from the Section 8 program. The average home value in this ZIP code is around $618,498, which underscores the significant investment required to acquire a property. For potential Section 8 landlords, this highlights the importance of understanding the long-term financial implications of participating in the program versus owning a property outright for higher market rents.

Before deciding to enter the Section 8 program with your first rental in ZIP 03842, it is crucial to verify that your property meets all the necessary requirements for eligibility. This includes ensuring that your rental unit passes a thorough inspection by the local housing agency to confirm it meets health and safety standards. Compliance with these regulations is non-negotiable and essential for maintaining a successful Section 8 rental business.

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.