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 | $1,160 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,070 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,170 | $254,762 | 0.46% | F |
| 2BR | $1,530 | $346,375 | 0.44% | F |
| 3BR | $2,070 | $425,288 | 0.49% | F |
| 4BR | $2,100 | $522,786 | 0.4% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 03741 (Canaan, NH) on the axes of yield and stability reveals a unique real estate market scenario. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,690, while the market rent stands at $1,140. This indicates a significant gap between government-subsidized rents and the actual market rates, suggesting a higher potential yield for landlords participating in Section 8 programs.
However, the median home value of $382,582 is relatively high, which might limit the number of eligible tenants who can afford housing in this area under the program's income restrictions. Additionally, the rental market in Canaan appears to be modestly populated, with only 21.3% of residents being renters. This percentage is low compared to many urban areas, indicating that the demand for rental properties might also be lower.
The average income figure of $82,181 provides insight into the economic stability of the area. While this income level is above the national average, it does not necessarily translate into stability for rental investments due to the lack of available data on days on market (DOM). A higher income level generally suggests greater financial security among residents, but without knowing how quickly properties are rented out, it's challenging to fully assess stability.
In conclusion, ZIP 03741 leans towards a high-yield market due to the substantial difference between FMR and market rent. However, the classification on the stability axis is less clear-cut due to limited data points. The relatively low percentage of renters and the absence of DOM data suggest a market that is not highly volatile but also not characterized by consistently quick turnover, which is crucial for steady cash flow. Therefore, Canaan, NH, presents a scenario where yields are attractive for Section 8 participation, but stability remains somewhat uncertain, making it neither a pure flip-style market nor a steady-cashflow zone, but rather a middle ground where careful consideration of tenant eligibility and property management practices is necessary.
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.