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 | $1,570 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,210 |
| 3 Bedrooms | $2,630 |
| 4 Bedrooms | $2,970 |
| 5 Bedrooms | $3,445 |
| 6 Bedrooms | $3,858 |
| 7 Bedrooms | $4,167 |
| 8 Bedrooms | $4,375 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,690 | $579,000 | 0.29% | F |
| 2BR | $2,210 | $975,921 | 0.23% | F |
| 3BR | $2,630 | $1,280,817 | 0.21% | F |
| 4BR | $2,970 | $1,680,207 | 0.18% | F |
| 5BR | $3,445 | $2,581,408 | 0.13% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 03870, located in Rye, New Hampshire, reveals several key insights for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $2250 per month for fiscal year 2024. In contrast, the Census ACS reports the market rent at $1790 per month, indicating that voucher tenants can cashflow at the FMR rate without any significant issues.
To further understand the investment potential, consider the median home value in the area, which stands at $1,264,396. This figure yields a rent-to-price ratio of approximately 1.42%, calculated by dividing the monthly market rent ($1790) by the median home value ($1,264,396) and multiplying by 12 months. A low rent-to-price ratio suggests that rental income alone might not be the primary driver of returns in this market, pointing towards appreciation or stability as more compelling investment angles.
The dynamics between renting and buying in ZIP 03870 do not significantly impact the decision-making process due to the lack of relevant data on days on market (DOM) and the percentage of price cuts. However, given the high median home value and the relatively low market rent, it is clear that the area is primarily driven by homeownership rather than rental activity. This means that the demand for rental properties, especially those eligible for Section 8 vouchers, is likely to remain stable but not exceptionally high.
The strongest investor angle in this market is appreciation. With a median home value well over a million dollars and a modest market rent, the potential for property value growth outweighs the benefits of cashflow or short-term stability. Investors should focus on acquiring properties that can leverage future increases in property values rather than relying solely on rental income.
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.