New Hampshire cap rates

New Hampshire multifamily cap evidence and operating comparisons

The useful benchmark is one that matches the property’s geography, income basis, condition and buyer pool. Cap rate is annual net operating income (NOI) divided by price, before financing. A county gross rent-to-value index is a different measure.

A total sale count is not necessarily the number of sales with disclosed caps. Published averages, medians, asking yields, modeled references and professional surveys are different statistics. Undisclosed weighting or NOI conventions prevent a reliable statewide average and like-for-like appraisal. Two publishers using the same provider do not create independent confirmation.

What changes the underwriting locally?

Use local operating evidence to decide which property assumption needs verification next. Each interpretation below is conditional editorial analysis, not a measured cap-rate forecast.

Manchester, Nashua and southern commuter apartments

Reported evidence: NH asking rent grew 1.9% annually. No matching Manchester or Nashua neighborhood cap sample was verified. Colliers NH multifamily midyear 2026

Local underwriting mechanism: The relevant comparison is collected rent against competing units with the same utility responsibility. A smaller building’s landlord-paid heat, water and maintenance can change its income basis even when the headline rent matches.

RentalCalcs interpretation: Stabilization is a more defensible starting assumption than paying today for cap compression. A growing asking-rent reference supports income diligence; it does not establish a lower required yield.

What would change the view, and what to obtain?

Contrary evidence: Flat collections after concessions, higher winter expense or weaker lender coverage would undermine an income-recovery thesis.

Property decision: Reconcile twelve monthly collection statements to leases and utility bills. Separate turnover gains from vacancy loss. Obtain closed comps matching unit count and expense responsibility.

Supported submarkets and the missing evidence

Concord, Upper Valley, Lakes Region and North Country lack matching local cap samples in this edition. Southern tracked apartments do not represent seasonal housing or every rural rental. The often-quoted 95.4% combines NH and Massachusetts; NH alone is 95.3%. Do not substitute either for a subject’s economic occupancy.

The New Hampshire county directory and Hillsborough County cap-rate screening page serve local screening questions. Their modeled housing indexes are not a substitute for the apartment observations here. Do not copy a county index into a building’s appraisal.

Compression, stabilization or expansion?

Colliers’ leasing evidence supports an income recovery; its broker roundtable emphasizes the return demanded by capital. Those can coexist. They share a publisher and do not provide independent transaction confirmation. CBRE adds a different national survey method; it cannot validate NHCIBOR’s undisclosed CoStar statistic.

RentalCalcs base underwriting position: start with unchanged exit yield and verified buyer NOI. This is a conservative scenario choice, not an assertion that the state’s cap rates will stay flat. The three cases identify evidence that can change the choice; no probabilities or basis-point targets are assigned.

Short-term policy rates do not equal property borrowing costs. Loan spreads, term, leverage and amortization affect coverage. Better physical occupancy does not guarantee stronger collected NOI; a smaller construction pipeline does not eliminate existing lease-up competition.

Translate income and yield into property value

Value = annual NOI ÷ (cap rate ÷ 100). At constant income, a higher cap means a lower value. A move from 5% to 6% is +100 basis points and reduces value by 16.7%, before debt or sale costs; it is not a 1% value decline.

Original arithmetic, not observed local prices. This fixed matrix does not change with the tool above. NOI changes are total over the chosen holding period, not annual growth. Neither view includes debt payoff, transaction costs, sale tax or interim cash flow. Use the full calculator for those cash movements.

One acquisition, reconciled from rent roll to investor cash

The illustration uses 20 units at $1,250 monthly scheduled rent, an 8% vacancy/collection loss and independently stated buyer expenses. These are standardized teaching assumptions, not estimates of attainable New Hampshire rent, taxes or premiums. The 6% entry cap is a chosen scenario, not an observed statewide recommendation.

Replace the illustrative costs with property evidence

Obtain the municipality’s parcel assessment, revaluation timing and adopted tax rate. An equalization ratio is not the property’s tax bill. Verify seller exemptions and pending changes rather than applying a blanket NH percentage. NH DRA Property Bureau

The operating bridge is landlord-paid heat and water through a full winter, followed by insurance renewal and system work. Obtain a binding insurance quote and contractor scope. Illustrative costs below are assumptions, not observed NH premiums.

The assumed loan is not a current quote. For a hypothetical 1.25× minimum DSCR before reserves, the loan ceiling is about $1,265,687 at these terms; actual sizing also depends on LTV, debt yield and lender reserve/NOI definitions. With a full reserve deduction, DSCR becomes 1.19×. Negative cash is displayed as a loss, never hidden.

Yield on cost is separate: a hypothetical 10% higher stabilized NOI of $132,000 on price, closing and initial work of $2,120,000 produces 6.23%. It is not the going-in yield. Carrying costs and overruns would increase that cost basis; the income improvement has not been earned.

Core results and worksheet are free. Assumptions do not transfer to linked calculators; enter the actual rent roll, costs and loan terms. A tool click is separate from a completed analysis or saved deal. Sale proceeds require debt payoff, selling costs and applicable taxes.

Before relying on a New Hampshire cap rate

What is a good cap rate?

No single yield is defensible for all of New Hampshire. Compare matching closed-sale income, buyer expenses and work requirements, then test debt coverage and invested cash. A higher nominal cap may compensate for missing income or capital obligations rather than create a better return.

Can these apartment references price a duplex or another asset class?

There is no automatic transfer. One-to-four-unit rentals can compete with owner-occupants, while office, retail and industrial leases carry different downtime, credit and leasing-capital obligations. Use a matching sale cohort. The single-family analyzer helps build a smaller rental’s own income budget.

How should a buyer verify NOI?

Reconcile a trailing year of collections, free rent, delinquency and reimbursements to the leases and bank-backed operating statements. Replace taxes, insurance and management with buyer costs. Separate recurring repairs, immediate work and reserves. The NOI classification guide explains the expense bridge.

What if the deal depends on subsidized income or a refinance?

Verify the contract, approved rent, tenant portion, inspection and recurring compliance costs. The voucher-income valuation guide explains why a reference schedule is not contracted NOI. Refinance proceeds also depend on lender income, loan terms and payoff; higher appraised value alone does not guarantee available cash.

Sources, lineage and update policy

Research accessed October 18, 2026. Observation periods, publication and access dates are different. The source ledger identifies known coverage and undisclosed methods. Public brokerage research has commercial interests; public availability is not unrestricted dataset republication permission. This report summarizes limited facts and contributes original comparisons and underwriting analysis.

No automated build advances the editorial date. Revisit local facts and conditional conclusions together on new editions, corrections, material borrowing-cost changes or relevant operating/rule changes. First-publication dates are added only after public release.

Send a correction with the source and observation date · New Hampshire county directory · California’s separately researched report