Location: Portsmouth-Rochester, NH | Metro: Boston-Cambridge-Quincy, 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 | $2,130 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,650 | $472,091 | 0.56% | F |
| 3BR | $3,180 | $661,239 | 0.48% | F |
| 4BR | $3,510 | $836,250 | 0.42% | F |
| 5BR | $4,072 | $1,211,134 | 0.34% | F |
U.S. Census Bureau data (2024)
ZIP code 03874, located in Seabrook, NH, falls within the Portsmouth-Rochester, NH HUD Metro FMR Area. To understand its position within the metro, we must analyze its Fair Market Rent (FMR), market rent, home value, and renter share.
The FMR for ZIP 03874 is set at $2,380 for fiscal year 2024. This figure represents the maximum amount that a household participating in the Section 8 program can pay for rent. In comparison to typical ZIP codes within the Portsmouth-Rochester, NH HUD Metro FMR Area, the FMR of $2,380 is notably higher, indicating that it is a premium sub-market within the region.
The market rent in ZIP 03874 is listed at $1,513. This is lower than the FMR, suggesting that there is a potential subsidy gap for tenants receiving Section 8 assistance. However, it still indicates that rents are relatively affordable compared to the FMR, which could attract both subsidized and non-subsidized renters.
The median home value in ZIP 03874 is $654,288. This figure is also higher than what is typically seen in other ZIP codes within the Portsmouth-Rochester, NH HUD Metro FMR Area, further supporting the notion that it is a premium sub-market. High home values generally correlate with higher property taxes and maintenance costs, which landlords should consider when evaluating investment opportunities.
The renter share in ZIP 03874 stands at 32.3%. While this is above average for the metro area, it does not necessarily signal a Section 8 sweet spot. The combination of a high renter share with above-average home values suggests that the area may be more attractive to middle-income renters rather than those relying solely on Section 8 assistance.
To summarize, ZIP 03874 is positioned as a premium sub-market within the Portsmouth-Rochester, NH HUD Metro FMR Area, characterized by higher-than-average FMRs, market rents, and home values. This makes it less likely to be a value pocket for low-income renters but a solid option for those who can afford slightly higher rental rates and are seeking a desirable location.
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.