Location: Grafton 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 | $1,820 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,400 |
| 3 Bedrooms | $3,260 |
| 4 Bedrooms | $3,270 |
| 5 Bedrooms | $3,793 |
| 6 Bedrooms | $4,248 |
| 7 Bedrooms | $4,588 |
| 8 Bedrooms | $4,817 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,400 | $572,177 | 0.42% | F |
| 3BR | $3,260 | $648,084 | 0.5% | F |
| 4BR | $3,270 | $837,684 | 0.39% | F |
| 5BR | $3,793 | $1,385,207 | 0.27% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 03245, Holderness, NH, reveals a stark contrast between the federally determined Fair Market Rent (FMR) and the actual market rents. Using the annualized figures, we can calculate the gross yields for both scenarios.
First, let's look at the FMR scenario. With an annualized Fair Market Rent for a 2BR unit set at $2,610, the gross yield would be calculated as follows:
Next, using the market rent figure of $2,068 derived from Census ACS data, the gross yield would be:
The disparity between these two yields is significant, with the FMR-based gross yield being notably higher than the market rent-based gross yield. However, when considering the rental market dynamics in Holderness, NH, it becomes evident that the market rent scenario is more realistic. The renter density stands at only 16.3%, indicating a relatively low demand for rental properties. Additionally, the lack of data on days on market (DOM) suggests either a very tight or a very slow-moving rental market, which would likely drive rents closer to the market rate rather than the FMR.
Investors should be cautious about relying solely on the higher FMR-based gross yield for decision-making. The actual performance of rental properties in Holderness is more likely to align with the lower market rent-based gross yield. This means that while the potential for higher rental income exists under the FMR, the reality of securing tenants willing to pay such rates is uncertain given the low renter density.
In conclusion, the gross yield based on market rent of 0.318% provides a more accurate representation of the rental income potential in Holderness, NH, compared to the FMR-based gross yield of 0.401%. Landlords and small-portfolio investors should factor this into their investment calculations, recognizing the limitations posed by the local rental market conditions.
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.