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 | $312,599 | 0.63% | D |
| 3BR | $2,430 | $443,638 | 0.55% | F |
| 4BR | $2,650 | $465,325 | 0.57% | F |
| 5BR | $3,074 | $535,748 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 03867, located in Rochester, NH, presents a dynamic rental market that is currently balanced but leaning towards demand. The Fair Market Rent (FMR) for the area is set at $1780 for the fiscal year 2024, while the actual market rent, as indicated by Zillow's ZORI index, stands slightly higher at $1,961. This suggests that the rental market is robust and slightly above the government's benchmark, indicating a healthy demand for rental properties.
A key indicator of market health is the price-cut share, which for ZIP 03867 is an impressively low 0.1%. This figure implies that very few landlords are having to lower their rents to attract tenants, further supporting the notion that demand is strong relative to supply. Additionally, the median home value in the area is $392,505, reflecting a stable residential real estate market that can support both homeownership and rental investment.
The 37.4% renter share in ZIP 03867 is noteworthy. A significant portion of the population renting rather than owning indicates ongoing long-term housing pressure. This high percentage of renters suggests that there is a consistent need for rental properties, which could be due to factors such as affordability, lifestyle preferences, or the transient nature of the local workforce. For landlords and small-portfolio investors, this points to a reliable tenant base that will likely sustain demand for rental units over time.
In summary, ZIP 03867 exhibits characteristics of a market where demand meets supply effectively, with a slight edge towards demand. The low price-cut share and high renter share indicate a stable and potentially growing rental market, making it an attractive location for real estate investments focused on rentals.
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.