Strafford County

Strafford County's headline numbers place it firmly in appreciation territory, with only marginal yield on offer. At a median home price of $506,300 and median rent of $2,155, the gross rent-to-price ratio sits at 5.1%, which already suggests thin cash flow before a single expense hits the ledger. The cap rate of 3.32% confirms it: at a 6.85% financing rate, the math never clears. Running a standard 20% down ($101,260), the modeled scenario produces a monthly mortgage of $2,654, estimated expenses of $754, and negative cash flow of $1,253 per month, translating to a cash-on-cash return of -12.91%. The appreciation score of 80 out of 100 and year-over-year price growth of 2.98% tell you what this market is actually selling: future equity, not current income. Nationally, Strafford ranks 560th out of 1,000 counties and sits in the 28th percentile, which is consistent with a market that has priced out most cash-flow buyers.

This market suits an appreciation-oriented buyer who can absorb negative carry, or a high-net-worth investor prioritizing long-term equity build in a supply-constrained New England county. It does not suit a cash-flow buyer without significant rent upside or unusual financing. A value-add operator might find a path if they can push rents materially above the $2,155 median through renovation or unit mix improvement, but at a 3.32% cap rate the margin for error is thin. The affordability index of 28 and affordability score of 28 signal that many renters are already stretched, which limits how aggressively rents can be raised without increasing vacancy risk. The stability score of 50 is middling, nothing here suggests a locked-in tenant base that will absorb above-market increases without friction.

The tax burden in Strafford deserves its own line on your underwrite. New Hampshire's state-average effective property tax rate of 2.18% is flagged very high, and on a $506,300 acquisition that translates to approximately $11,037 in annual property taxes, or roughly $920 per month before insurance. Adding the estimated $97 monthly insurance cost brings the combined tax-and-insurance load to $1,017 per month. That figure alone represents nearly half the gross rent, which is why the cash-on-cash return collapses so quickly. New Hampshire has no state income tax and no general sales tax, which benefits residents and can support housing demand, but those advantages do not offset the property tax hit at the investment level. Note that the 2.18% figure is a state-average estimate from Tax Foundation 2024 data; actual county and township rates in Strafford can vary, and you should pull the specific mill rate for any target municipality before closing.

Comparing Strafford to its neighbors sharpens the picture. Rockingham County sits at a higher median price ($599,250) with a lower rent-to-price ratio (4.73%) and an overall score of 54, making it a worse yield market with a steeper entry cost. Hillsborough County is nearly identical in price ($503,490) but yields a slightly lower ratio (4.90%) and scores 55 overall, marginally better on a composite basis. Merrimack County is more affordable at $470,918, has a 4.95% ratio, and scores 56, making it a modestly better risk-adjusted entry point if appreciation expectations are similar. The most compelling alternative in the dataset is Grafton County, with a median price of $413,099, a rent-to-price ratio of 5.94%, and an overall score of 60. Grafton is the only neighboring county in this set that breaks meaningfully above 5.5% gross yield, which suggests a real cash-flow gap versus Strafford. Coos County shows the lowest price point at $258,134 and scores 57, but the absence of rent data makes it difficult to evaluate on yield terms. An investor should choose Strafford over its neighbors specifically when they have high conviction in local price appreciation, want proximity to the University of New Hampshire in Durham as a potential demand driver, and can fund the negative carry without strain. If the primary objective is yield or near-breakeven cash flow, Grafton or Merrimack present a more defensible entry.