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 | $1,320 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,400 |
| 5 Bedrooms | $2,784 |
| 6 Bedrooms | $3,118 |
| 7 Bedrooms | $3,367 |
| 8 Bedrooms | $3,535 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,740 | $344,225 | 0.51% | F |
| 3BR | $2,360 | $485,627 | 0.49% | F |
| 4BR | $2,400 | $505,098 | 0.48% | F |
U.S. Census Bureau data (2024)
The ZIP code 03285, located in Thornton, NH, presents an interesting balance between yield and stability for real estate investors. With a Fair Market Rent (FMR) of $1,930 for the fiscal year 2026, compared to a market rent of $1,270, there is a significant opportunity to capitalize on higher rental yields. The discrepancy between the FMR and market rent suggests that properties in this area could potentially be rented at rates above the local average, driven by the government's assessment of fair rental values.
However, the median home value of $429,312 indicates a relatively high investment cost. This figure is crucial when considering the initial capital required to enter the market. The median income of $90,022 provides insight into the economic capacity of the local population to afford higher rents, which supports the potential for achieving the FMR rental rates. Yet, it also implies that tenants might be sensitive to rent increases due to the high cost of living relative to their income levels.
On the stability axis, the data shows a lower percentage of renters at 11.7%. This low renter rate suggests that the market may experience less turnover and more stable tenancy, as a smaller proportion of the population is renting rather than owning homes. However, the lack of information regarding the days on market (DOM) for rentals can make it difficult to predict how quickly properties can be leased out, which is a key indicator of market stability.
Given these factors, ZIP 03285 leans towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The potential for higher rental yields exists due to the disparity between the FMR and market rent, but the high median home value and median income suggest a need for careful consideration of tenant selection and rent pricing to ensure long-term stability. Landlords and small-portfolio investors should focus on properties that can be rented at or slightly below the FMR to attract and retain tenants, thereby maintaining a reliable cash flow.
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.