Location: Portsmouth-Rochester, NH | Metro: Portsmouth-Rochester, NH HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 real estate market in ZIP 03871 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For ZIP 03871, the FMR for FY 2024 is set at $2250. However, recent data from Zillow indicates that the average market rent for the area is approximately $5000. This discrepancy highlights a substantial difference of $2750 between the FMR and the market rate.
To put this gap into perspective, it represents a 122% increase from the FMR to the market rent. For landlords and small-portfolio investors, this means that accepting Section 8 voucher tenants will result in renting properties below the open-market rates. The cost of housing voucher tenants below these rates can be seen as a trade-off between higher occupancy stability and lower immediate cash flow.
In the broader context of New Hampshire, where 8.7% of residents are renters, the median home value stands at $2,824,277, and the median income is $142,115. These figures suggest a relatively affluent area, which further emphasizes the disparity between the FMR and the actual market rent. Landlords who participate in the Section 8 program must be prepared to accept lower rents compared to what they could potentially earn on the open market.
Given the high market rents and the lower FMR, it is important for investors to carefully consider the financial implications of accepting Section 8 tenants. While the program ensures timely rent payments and can provide long-term stability, it also means foregoing the opportunity to charge market rates. Therefore, the decision to engage with Section 8 tenants should be made with a thorough understanding of the local rental market dynamics and personal financial goals.
Data Sources: FMR data from HUD (2027). 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.