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 | $1,450 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,980 | $392,960 | 0.5% | F |
| 3BR | $2,430 | $474,948 | 0.51% | F |
| 4BR | $2,650 | $465,938 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 03878, located in Somersworth, NH, presents a dynamic rental market that is currently in flux. The Fair Market Rent (FMR) for the area stands at $1,860 for fiscal year 2024, indicating a benchmark set by HUD for assessing affordability and eligibility for certain housing programs. Meanwhile, the actual market rent, measured by Zillow's ZORI (Zillow Observed Rent Index), is slightly lower at $1,775. This suggests that while rents are expected to rise, the current market conditions have not yet fully aligned with these projections.
The median home value in the area is $438,894, which provides insight into the overall economic health and property values within the community. However, the lack of specific data on price-cut shares and days on market (DOM) makes it challenging to definitively state whether supply is outpacing demand or vice versa. Typically, a high DOM or significant price-cutting would indicate an oversupply, but the absence of these figures leaves room for interpretation based on other metrics.
A key indicator of housing dynamics is the renter share, which is currently at 42.0%. This percentage implies that nearly half of the residents in Somersworth are renters, signaling a substantial long-term housing pressure. High renter shares often correlate with areas experiencing steady population growth, limited affordable homeownership options, or a mix of both. In this context, the persistent demand for rental properties can be seen as a positive sign for landlords and small-portfolio investors, as it suggests a stable tenant base and potential for consistent rental income.
The interplay between FMR and market rent also points towards an active rental market. Landlords should consider the FMR as a guideline for setting competitive rents, especially if they aim to attract tenants who may qualify for housing assistance programs. At the same time, the actual market rent reflects what current tenants are willing to pay, which could mean landlords need to balance their pricing strategy to remain competitive without losing potential government-subsidized tenants.
In conclusion, Somersworth's rental market is characterized by a moderate gap between projected and actual rents, coupled with a significant portion of the population choosing to rent rather than buy. This creates a scenario where landlords can expect a steady flow of tenants, though they must be mindful of local trends and adjust their strategies accordingly to maintain occupancy and profitability.
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.