Location: Grafton County, NH | Metro: Grafton 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 | $1,240 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,630 | $309,174 | 0.53% | F |
| 3BR | $2,220 | $375,428 | 0.59% | F |
U.S. Census Bureau data (2024)
The real estate landscape in Grafton, NH (ZIP 03240), is currently characterized by a median home value of $305,867. This figure, combined with the absence of percentage reductions in listings and an unspecified median days on market (DOM), suggests a stable housing market with moderate pricing power for landlords and small-portfolio investors over the next 12-24 months.
The lack of significant reductions in listing prices indicates that sellers are maintaining their asking prices, which can be interpreted as a sign of confidence in the local real estate market. This stability supports the notion that there is little downward pressure on property values, allowing landlords to maintain rental rates without substantial adjustments.
On the rental side, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,810, while the current market rate stands at $1,243 according to Census ACS data. The gap between the FMR and the actual market rent signals potential upward pressure on rental prices. Landlords and investors could leverage this disparity to gradually increase rents, aligning more closely with the FMR as the market adjusts.
For long-term investors, the setup implies a realistic appreciation thesis. With stable home values and a growing rental market, there is a foundation for modest property value increases. However, the absence of specific DOM data and percentage reductions in listings means that while appreciation is possible, it will likely be constrained by the overall economic environment and local demand conditions.
Investors should focus on properties that offer value to tenants seeking affordable housing options. The current market rent is significantly below the FMR, indicating a potential for rental growth as the market moves toward equilibrium. This dynamic provides a clear opportunity for landlords to improve their cash flow through strategic rent management practices.
In summary, the median home value of $305,867 and the relationship between FMR and market rent in Grafton, NH, suggest a balanced approach to pricing power. Investors can expect a steady market with opportunities for gradual appreciation and rent increases, but they must remain vigilant to local economic shifts and tenant preferences.
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.