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 | $900 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $302,779 | 0.41% | F |
| 3BR | $1,640 | $367,327 | 0.45% | F |
| 4BR | $1,710 | $417,924 | 0.41% | F |
U.S. Census Bureau data (2024)
ZIP 03561, located in Littleton, NH within Grafton County, offers a strategic opportunity for Section 8 portfolio inclusion, primarily as an appreciation play. The area's median home value stands at $353,384, which is notably higher than the market rental rate of $940 and the Fair Market Rent (FMR) of $1,370 for the metro area in fiscal year 2026. This discrepancy highlights a potential undervaluation in the local real estate market, ripe for capital appreciation.
The significant spread between the FMR and the market rental rate, amounting to $430 per month, suggests that properties in ZIP 03561 could be rented out at a higher rate than the current market average, without exceeding the FMR cap. This makes it particularly attractive for Section 8 participants who can leverage the government-subsidized rents while still achieving above-average returns compared to the local rental market.
Moreover, the lack of specific data on price-cut share and days on market (DOM) indicates a stable real estate market. Stability often correlates with gradual appreciation over time, making ZIP 03561 a solid choice for long-term investment. While the median income of $56,746 and a 48.9% renter share suggest it could also serve as a diversifier, the primary focus should be on its potential for appreciation.
To further substantiate this as an appreciation play, consider the broader context of the NH metro area. With a median home value significantly higher than both the market and FMR rates, there is room for property values to rise, especially if economic conditions improve and demand for housing increases. Landlords and small-portfolio investors should take advantage of the current valuation gap and anticipate future growth.
In conclusion, ZIP 03561 is best suited as an appreciation play within a Section 8 portfolio strategy. Its high median home value, combined with the favorable spread between FMR and market rental rates, positions it as an investment with strong potential for capital gains over the medium to long term.
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.