Location: Western Rockingham County, NH | 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 | $1,520 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $2,110 |
| 3 Bedrooms | $2,770 |
| 4 Bedrooms | $2,780 |
| 5 Bedrooms | $3,225 |
| 6 Bedrooms | $3,612 |
| 7 Bedrooms | $3,901 |
| 8 Bedrooms | $4,096 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,610 | $235,115 | 0.68% | D |
| 2BR | $2,110 | $380,119 | 0.56% | F |
| 3BR | $2,770 | $562,374 | 0.49% | F |
| 4BR | $2,780 | $684,685 | 0.41% | F |
| 5BR | $3,225 | $714,171 | 0.45% | F |
U.S. Census Bureau data (2024)
The dynamics of the real estate market in ZIP 03038, Derry, NH, reveal a scenario where demand closely follows supply, but slight indicators point towards a balanced lean towards demand. The Fair Market Rent (FMR) for ZIP 03038 in fiscal year 2024 is set at $1720, while the actual market rent, as measured by Zillow's ZORI index, stands at $2,101. This suggests that the rental market is slightly above the government's benchmark, indicating a healthy level of demand.
The low 0.2% price-cut share and a modest 12-day days on market (DOM) further support the idea that properties are selling relatively quickly without significant price adjustments. This efficiency in the market signals that buyers are finding homes at or near asking prices, a positive sign for landlords and small-portfolio investors.
The median home value in Derry is $493,705, which provides a stable base for property values. However, the 30.3% renter share is particularly noteworthy. This high percentage of renters suggests ongoing long-term housing pressure, as a significant portion of the population is unable or chooses not to purchase homes. For landlords, this implies a consistent and sizable pool of potential tenants, reducing vacancy risks.
In summary, the market in ZIP 03038 shows signs of a balanced yet slightly demand-driven environment. Rental prices are above the FMR, and homes sell efficiently, suggesting that the local economy supports both rental and homeownership activities. The substantial renter share points to sustained demand for rental properties, making Derry an attractive location for those interested in the rental market.
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.