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 | $1,130 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,050 |
| 5 Bedrooms | $2,378 |
| 6 Bedrooms | $2,663 |
| 7 Bedrooms | $2,876 |
| 8 Bedrooms | $3,020 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,030 | $369,587 | 0.55% | F |
U.S. Census Bureau data (2024)
ZIP code 03740, located in the NH metro area within Grafton County, New Hampshire, serves as an ideal cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,560, which exceeds the local market rent of $1,438. This $122 spread ensures that properties in this ZIP code will generate positive cash flow for landlords and small-portfolio investors.
The median home value in ZIP 03740 is $315,119, indicating a relatively stable housing market. Given the consistent demand for affordable housing and the guaranteed rental income from the Section 8 program, this ZIP code provides a reliable source of steady cash flow. Landlords can expect to receive a fixed monthly rent payment, adjusted annually by the FMR, ensuring long-term financial stability.
While the ZIP code does not offer significant potential for appreciation, with no data available on price-cut shares or days on market (DOM), its primary value lies in its ability to provide a dependable revenue stream. The 9.1% renter share and median income of $67,813 suggest a modest but stable population of renters who benefit from the Section 8 program. This demographic supports the notion that 03740 is best suited for anchoring a portfolio's cash flow rather than serving as an appreciation play or a diversifier.
In conclusion, ZIP 03740 is best positioned as a cash-flow anchor in a Section 8 portfolio due to the favorable spread between FMR and market rent. It offers a secure and predictable income source, essential for maintaining financial stability in real estate investments.
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.