Location: Lawrence, MA | Metro: Lawrence, MA-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 | $1,820 |
| 1 Bedroom | $1,960 |
| 2 Bedrooms | $2,570 |
| 3 Bedrooms | $3,060 |
| 4 Bedrooms | $3,380 |
| 5 Bedrooms | $3,921 |
| 6 Bedrooms | $4,392 |
| 7 Bedrooms | $4,743 |
| 8 Bedrooms | $4,980 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,570 | $453,528 | 0.57% | F |
| 3BR | $3,060 | $588,807 | 0.52% | F |
| 4BR | $3,380 | $703,704 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 03873, which encompasses Sandown, NH, and parts of Rockingham County, can be clearly defined by examining the SAFMR (Small Area Fair Market Rent) and comparing it to the local market rent. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $2380. This figure represents the maximum amount that the housing authority will pay to landlords participating in the Section 8 program for this specific ZIP code.
In contrast, the average local market rent for a two-bedroom unit, according to the Census ACS, is $1,893. This discrepancy highlights the potential benefits for landlords who participate in the Section 8 program, as they can receive a higher rental payment compared to the local market average.
A landlord should understand that the actual reimbursement received from a voucher is calculated based on several factors. First, the tenant's portion of the rent is typically determined by their income, with the standard being 30% of their adjusted monthly income. Additionally, utility allowances are included in the total reimbursement but vary depending on the household size and the type of utilities required.
To illustrate, let's assume a tenant's adjusted monthly income is $1,500. Their portion of the rent would be 30% of this, equating to $450. The remaining amount, up to the SAFMR of $2380, is covered by the housing authority. Therefore, if the total SAFMR is $2380, the landlord would receive $1,930 ($2380 - $450) directly from the housing authority. This amount does not include any utility allowances, which could further increase the total reimbursement.
The typical reimbursement gap or surplus in ZIP 03873 is a surplus for landlords. Given that the local market rent is $1,893 and the Section 8 reimbursement is closer to $2380, landlords participating in the program can expect to receive more than the average local rent. In this case, the surplus would be approximately $487 per month for a two-bedroom apartment, assuming no additional utility allowances.
This economic analysis provides a straightforward view of the financial advantages for landlords in ZIP 03873 when accepting Section 8 vouchers. It ensures that the rental income is above the local market rate, offering a stable and predictable revenue stream.
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.