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 | $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 | $441,619 | 0.45% | F |
| 3BR | $2,430 | $620,214 | 0.39% | F |
| 4BR | $2,650 | $736,534 | 0.36% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 03861 in Lee, NH, on the yield and stability axes reveals a unique investment scenario for landlords and small-portfolio investors.
On the yield axis, the Federal Market Rent (FMR) for ZIP 03861 is set at $1720 for fiscal year 2024. This figure represents the maximum rent that can be charged to tenants receiving housing assistance under the Section 8 program. In comparison to the median home value of $606,614, the FMR suggests a relatively low rental yield. However, since there is no specific market rent figure provided, we must rely on the FMR as an indicator of potential rental income.
Moving to the stability axis, the data indicates that only 4.2% of households in ZIP 03861 are renters, which is a low percentage suggesting a primarily owner-occupied market. The lack of a specific figure for days on the market (DOM) makes it challenging to assess how quickly properties might be rented out. However, the median household income of $131,579 provides insight into the financial stability of the area's residents, indicating that they likely have the means to afford higher rents and maintain stable tenancies.
Given these figures, ZIP 03861 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The low percentage of renters suggests limited demand for rental properties, which could make it difficult to achieve high yields through rapid turnover. On the other hand, the strong median income supports the likelihood of stable tenancies once a property is rented. Therefore, while the potential for high rental yields is constrained, the overall stability of the area makes it suitable for long-term, consistent cash flow investments.
To conclude, the low renter percentage and high median income point to a market where the focus should be on providing quality, affordable rentals to ensure stable occupancy and predictable cash flows, rather than pursuing high-yield, short-term gains.
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.