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 | $1,600 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $2,110 |
| 3 Bedrooms | $2,860 |
| 4 Bedrooms | $2,900 |
| 5 Bedrooms | $3,364 |
| 6 Bedrooms | $3,768 |
| 7 Bedrooms | $4,069 |
| 8 Bedrooms | $4,272 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,110 | $374,250 | 0.56% | F |
| 3BR | $2,860 | $502,844 | 0.57% | F |
| 4BR | $2,900 | $572,823 | 0.51% | F |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 03784 in Lebanon, NH, for Section 8 landlords and small-portfolio investors highlights several potential issues. First, tenant turnover can be a significant challenge due to the disparity between the market rent of $1,484 and the Federal Market Rent (FMR) of $2,340 for fiscal year 2026 in the metropolitan area. This difference suggests that tenants may struggle to afford market rents if they rely solely on Section 8 vouchers, which typically cover the FMR.
Vacancy exposure is another concern. The days on market (DOM) is listed as N/A, indicating incomplete data or an exceptionally quick rental market. However, without precise DOM figures, it's difficult to assess the likelihood of extended vacancy periods, which can significantly impact cash flow.
Deferred maintenance exposure is also notable. With a typical home value of $477,919 and a median income of $91,000, landlords must be prepared for higher-than-average maintenance costs. Tenants with limited financial resources may not contribute to such expenses, leaving the landlord responsible for all upkeep.
Despite these risks, the high renter share of 51.9% in Lebanon, NH, provides a strong foundation for demand. A larger proportion of renters often translates into a greater number of individuals seeking housing through Section 8 vouchers, thereby reducing the overall risk of vacancy. Moreover, the presence of a substantial renter population can help stabilize the local rental market, making it easier to find and retain tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.