Location: Carroll County, NH | Metro: Carroll County, NH
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 | $1,080 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $423,485 | 0.36% | F |
| 3BR | $2,120 | $487,181 | 0.44% | F |
U.S. Census Bureau data (2024)
The gap between the FMR and the actual market rent in ZIP 03875 is substantial. Specifically, the FMR of $1,690 exceeds the typical market rent of $999 by $691, or approximately 69%. This disparity makes properties in this ZIP code attractive for landlords and small-portfolio investors looking to capitalize on the yield potential offered by Section 8 housing vouchers.
In Madison, NH, where only 2.5% of residents are renters, the median home value stands at $475,883, indicating a predominantly owner-occupied community. The median household income of $115,583 further underscores the economic profile of the area, suggesting that many residents can afford higher rents or mortgage payments.
Given the high FMR compared to the actual market rent, landlords who accept Section 8 tenants can potentially achieve a higher yield on their investments. However, it's crucial to note that accepting housing vouchers comes with its own set of requirements and regulations. These include regular inspections, adherence to specific maintenance standards, and dealing with the administrative processes associated with the program.
The analysis must also consider the broader implications of the low rental demand in Madison, NH. With such a small percentage of the population renting, landlords might face challenges in attracting tenants, especially those with limited financial resources. Yet, the opportunity to charge closer to the FMR while serving a critical need for affordable housing can be a compelling strategy for yield-focused investments.
To summarize, the significant gap between the FMR and the actual market rent in ZIP 03875 presents a unique opportunity for landlords and small-portfolio investors. By accepting Section 8 tenants, they can potentially increase their rental income by over 69% compared to the average market rate, making it a strategic choice for yield enhancement in this specific context.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.