Location: Merrimack 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 | $1,210 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,690 | $371,423 | 0.46% | F |
| 3BR | $2,240 | $468,623 | 0.48% | F |
U.S. Census Bureau data (2024)
In ZIP code 03243, located in Hill, NH, the real estate market presents a unique setup for both landlords and small-portfolio investors. The median home value stands at $416,241, indicating a stable housing price environment. Despite the lack of specific data on the percentage of listings that have been reduced and the median days on market (DOM), the absence of significant reductions and short DOM periods typically suggest strong pricing power for sellers and landlords.
The Federal Market Rent (FMR) for the metro area, set at $1,830 for fiscal year 2026, provides a benchmark for rental pricing in the region. However, without specific local rental data, it's prudent to assume that the market closely follows or slightly deviates from the FMR. This suggests that rental income can be expected to remain relatively steady, assuming no drastic changes in local economic conditions.
For long-term investors, the appreciation thesis in Hill, NH, is anchored by the overall stability of the real estate market. Given the median home value and the current lack of substantial downward pressure on prices, it's reasonable to anticipate that property values will continue to appreciate, albeit at a moderate pace. This setup supports a long-term holding strategy, where patience and strategic management can lead to gradual capital growth.
The data implies that the market is resilient and that there is a solid foundation for maintaining or even increasing rents and property values over the next 12 to 24 months. Landlords and investors should focus on maintaining their properties to ensure they align with market expectations and continue to attract tenants willing to pay near-FMR rates. Additionally, the stability of the housing market supports a conservative approach to pricing, avoiding aggressive increases that could deter potential buyers or renters.
Investors should also consider diversifying their portfolios to include other assets or properties in areas with more pronounced growth trends, if such opportunities exist. However, the current setup in Hill, NH, offers a reliable and low-risk investment option, particularly for those looking to capitalize on steady appreciation and consistent rental income.
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.