Location: Carroll County, NH | Metro: Carroll 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 | $1,080 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $333,470 | 0.46% | F |
| 3BR | $2,120 | $425,865 | 0.5% | F |
| 4BR | $2,560 | $524,480 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 03886, encompassing Tamworth, NH, presents a dynamic rental market influenced by federal guidelines and local economic realities. The Fair Market Rent (FMR) set at $1,500 for the fiscal year 2026 reflects a higher benchmark compared to the actual market rent of $1,145, indicating that landlords have an opportunity to adjust their pricing strategies to align closer with federal standards.
The median home value in Tamworth stands at $376,850, which suggests a relatively stable property market. However, the discrepancy between the FMR and the market rent points towards a situation where the supply of rental units might be exceeding demand, as landlords may find it challenging to increase rents to match the FMR without losing tenants.
The 18.7% share of renters in the area signals a significant portion of the population relies on rental housing. This figure implies a continuous need for rental properties, which can exert long-term pressure on the housing market. Landlords and small-portfolio investors should take note of this trend, as it indicates a steady demand for rental units, even if the current market conditions suggest a slight oversupply.
The lack of specific data on price-cut shares and days on market (DOM) does not detract from the overall picture of a market in flux. Given the gap between the FMR and market rent, coupled with the substantial renter population, it's reasonable to infer that landlords must be competitive and flexible in their pricing strategies to attract and retain tenants. This balance is crucial for maintaining occupancy rates and ensuring steady cash flows in a region where the cost of living is reflected in higher property values but not necessarily in rental prices.
In summary, ZIP 03886 represents a market where the supply of rental units is currently greater than the demand, yet the high percentage of renters ensures a persistent need for rental accommodations. This dynamic creates both challenges and opportunities for landlords and investors, who must navigate the gap between federal rental benchmarks and local market realities to succeed.
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.