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 | $2,110 |
| 1 Bedroom | $2,270 |
| 2 Bedrooms | $2,970 |
| 3 Bedrooms | $3,540 |
| 4 Bedrooms | $3,990 |
| 5 Bedrooms | $4,628 |
| 6 Bedrooms | $5,183 |
| 7 Bedrooms | $5,598 |
| 8 Bedrooms | $5,878 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,270 | $336,455 | 0.67% | D |
| 2BR | $2,970 | $577,409 | 0.51% | F |
| 3BR | $3,540 | $805,856 | 0.44% | F |
| 4BR | $3,990 | $1,122,252 | 0.36% | F |
U.S. Census Bureau data (2024)
The ZIP code 03885 encompasses a part of Stratham, New Hampshire, known for its affluent and predominantly owner-occupied residential environment. With a total population of 7,754, only 7.4% of residents are renters, indicating a strong preference for homeownership among the community. The median household income stands at a robust $151,998, reflecting the high economic status of the area's inhabitants. The median home value in this ZIP is also impressively high, sitting at $777,657, which further underscores the premium nature of the real estate market here.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 03885 as set by the Department of Housing and Urban Development (HUD) for fiscal year 2024 is $2,670. This figure is notably higher than the average market rent reported by the Census Bureau's American Community Survey (ACS), which is $2,511. This disparity suggests that properties participating in the Section 8 program can command slightly higher rents compared to the general market, providing an incentive for landlords to enroll their units.
Given these characteristics, ZIP 03885 would be more suitable for a hands-on value-add buyer rather than a hands-off voucher operator. The high median income and home values indicate a demand for quality housing, which means that there is potential for increasing property values through improvements and upgrades. Additionally, the relatively low percentage of renters implies that competition for rental units may be less intense, allowing for greater flexibility in management strategies. For those willing to invest time and resources into enhancing their properties, the financial rewards could be substantial, given the favorable FMR rates and the overall economic strength of the area.
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.