6 New Hampshire cities ranked by estimated cap rate. The average cap rate across New Hampshire markets is 2.5%, with median home prices averaging $468K and rents averaging $2,047/mo. Berlin leads with a 3.8% cap rate at a $250K median price. Note that New Hampshire's average property tax rate of 1.84% is above the national average — factor this into your underwriting.
New Hampshire offers 6 investable rental markets tracked by CapRateCity. The state average cap rate of 2.5% is near the 3.81% national average. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: New Hampshire home prices average $468K, which is 40% above the national average of $333K. Rents average $2,047/mo.
Taxes and costs: Property taxes average 1.84% across New Hampshire, above the 1.08% national average — investors should model tax expense carefully. Nashua has the lowest rate at 1.82%.Vacancy averages 4.2%, tighter than the national average — favorable for landlords.
Growth outlook: Population growth across New Hampshire averages 0.48% per year, led by Nashua at 0.6%. Home values are appreciating at 2.6% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: New Hampshire is primarily an appreciation market. Cash flow investing requires below-median purchases or value-add strategies. Consider whether the growth and appreciation potential justifies tighter margins.