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 | $1,190 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,330 | $394,282 | 0.34% | F |
| 2BR | $1,690 | $416,065 | 0.41% | F |
| 3BR | $2,200 | $474,937 | 0.46% | F |
| 4BR | $2,410 | $566,965 | 0.43% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 03225, Barnstead, NH, reveals some key insights into the potential returns for landlords and small-portfolio investors. Using the Federal Market Rent (FMR) for a 2-bedroom apartment at $1,800 annually and the median home value at $446,719, the implied gross yield can be calculated.
First, consider the annualized FMR of $1,800. This equates to a monthly rental income of $150. With a median home value of $446,719, the gross yield would be approximately 0.36%. The calculation is straightforward: ($150 * 12) / $446,719 = 0.36%. This represents the percentage of the property's value that is returned annually in rental income before expenses.
Second, using the market rent figure of $1,355 annually from the Census ACS, the monthly rental income is $112.92. The gross yield under this scenario is about 0.30%, calculated as follows: ($112.92 * 12) / $446,719 = 0.30%. This lower gross yield reflects the current market conditions and the actual rents being paid by tenants in the area.
Given the 5.4% renter density in Barnstead, NH, it is important to note that the demand for rental properties is relatively low compared to other areas. However, the National Average Days on Market (DOM) is not available, which could provide additional context regarding how quickly rental units are occupied. Despite this limitation, the FMR-based gross yield of 0.36% is more optimistic and assumes full occupancy at the higher subsidy rate. In contrast, the market rent-based gross yield of 0.30% is more conservative and aligns with the actual rental rates observed in the area.
The choice between these two scenarios depends largely on the investor's risk tolerance and the specific details of the property. For landlords looking to secure a steady stream of income through the Section 8 program, the FMR-based gross yield of 0.36% is a more accurate reflection of potential earnings. On the other hand, for those who must rely on market conditions and face competition from other landlords, the gross yield of 0.30% based on market rent is a more realistic expectation.
In summary, while the FMR offers a higher gross yield, the market rent scenario is more reflective of the current economic situation in Barnstead, NH. Investors should consider these figures carefully when evaluating the potential returns of a Section 8 property in this ZIP code.
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.