Location: Carroll County, 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 | $514,448 | 0.38% | F |
| 3BR | $2,430 | $547,980 | 0.44% | F |
| 4BR | $2,650 | $640,641 | 0.41% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 03855, which encompasses New Durham, NH, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 03855 in fiscal year 2024 is set at $1890, while the Census ACS reports the average market rent at $1417. This means that the FMR exceeds the market rent by $473, or approximately 33.4%. This gap indicates a potential opportunity for landlords and small-portfolio investors.
The higher FMR compared to the market rent makes it a yield play for those who accept voucher tenants. Landlords can charge closer to the FMR rate without worrying about the tenant's ability to pay the difference, as the government covers the portion above the tenant's contribution. In New Durham, where only 6.0% of residents are renters, and the median home value stands at $508,945, the demand for rental properties might be lower. However, the Section 8 program can stabilize occupancy rates and provide a steady stream of income.
The median income in New Durham is $100,194, which is relatively high. This suggests that most residents can afford homes rather than renting, making the rental market less competitive. For landlords, accepting Section 8 tenants can be a strategic move to fill vacancies and ensure consistent payments. While there might be some administrative overhead and specific requirements for participating in the Section 8 program, the financial gap between the FMR and market rent compensates for these costs.
In conclusion, the $473 gap, or 33.4%, between the FMR and market rent in ZIP 03855 represents an attractive investment opportunity for those willing to navigate the Section 8 program. It allows landlords to potentially earn more than the local market average, providing a solid return on their investment properties in a market with limited rental demand.
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.