Location: Belknap County, NH | Metro: Belknap 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 | $1,360 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,600 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,950 | $397,242 | 0.49% | F |
| 3BR | $2,600 | $506,504 | 0.51% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 03218, located in Barnstead, NH within the Belknap County, NH metro area, reveals several key points for landlords and small-portfolio investors. Firstly, the rent math does work in favor of rental properties. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $2,160, while the current market rent, according to Census ACS data, stands at $1,469. This indicates that landlords can potentially charge above the current market rate, aligning with the FMR, thus increasing their revenue.
Secondly, the acquisition of homes in this ZIP code is reasonably affordable. With a median home value of $459,983, potential investors have a clear benchmark for property costs. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts suggests that the local real estate market is stable and less volatile. This stability can be beneficial for investors looking to acquire properties without facing prolonged vacancies or the need to lower asking prices significantly.
Thirdly, there is sufficient tenant demand to support rental investments. The ZIP code has a population of 1,160, with 9.7% of residents being renters. While the renter share is relatively low, the presence of any rental demand combined with the potential to increase rents towards the FMR level supports the feasibility of rental properties in this area.
In conclusion, ZIP code 03218 presents a favorable environment for rental investments. The ability to charge rents closer to the FMR of $2,160 compared to the current market rent of $1,469 enhances profitability. The median home value of $459,983 is within a reasonable range for acquisition, and the stable real estate market reduces risks associated with buying and renting out properties. Despite the low renter share, the combination of these factors suggests that rental investments in this ZIP code can be successful and profitable for landlords and small-portfolio investors.
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.