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 | $2,160 |
| 1 Bedroom | $2,260 |
| 2 Bedrooms | $2,970 |
| 3 Bedrooms | $3,640 |
| 4 Bedrooms | $3,970 |
| 5 Bedrooms | $4,605 |
| 6 Bedrooms | $5,158 |
| 7 Bedrooms | $5,571 |
| 8 Bedrooms | $5,850 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,640 | $2,296,742 | 0.16% | F |
| 4BR | $3,970 | $3,265,263 | 0.12% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 03854 in fiscal year 2024 is set at $3000. This figure represents the maximum amount that the Housing Choice Voucher Program, commonly known as Section 8, will pay towards a tenant's rent. It does not indicate the actual rent you should charge your tenants, but rather the ceiling on what the government will subsidize.
To put this into perspective, the average rent for a two-bedroom apartment in ZIP 03854, according to the Census Bureau's American Community Survey, is $3,501. This means that while the government might cover up to $3000 of a tenant's rent, you can still charge slightly above the FMR to meet market rates. However, it's important to ensure that your rental properties do not exceed the $3000 threshold for the government subsidy.
The 7.0% renter share in ZIP 03854 indicates that about 7% of the households in this area are renters. This translates to a significant demand for rental housing, particularly for those who qualify for the Section 8 program. Given the total population, this equates to a potential rental market size of around $2,425,804 in terms of acquisition costs for rental properties in this ZIP code.
Before you proceed with making your property available for Section 8 tenants, you must verify that your rental unit meets the minimum property standards set by the program. These standards include ensuring that your property is safe, decent, and sanitary. This verification step is crucial because failing to meet these requirements could result in your property being rejected from the program, leading to wasted time and resources.
In summary, the FMR of $3000 provides a benchmark for the government subsidy you can expect. With an average rent of $3,501, there is a viable opportunity to participate in the Section 8 program while still maintaining competitive market rates. The 7.0% renter share suggests a steady demand for rental housing, and the potential rental market size is substantial at approximately $2,425,804. Ensure your property meets the minimum standards to avoid rejection and to secure a steady income stream.
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.