A person inquiring about investment properties in Concord first asked about the down payment. They thought they only needed to prepare 3% or 5% like when buying a primary residence. The key items to check can be broadly divided into three categories: loan conditions, actual rental profitability, and New Hampshire's unique tax structure.

The first is the loan conditions. Investment property loans typically require a down payment of 15% to 25%, which is higher than for primary residences. A credit score of 620 or higher is necessary for consideration, but a score above 740 is needed to qualify for favorable interest rates (fanniemae.com). Interest rates are generally set 0.5 to 0.75 percentage points higher than those for primary residences. Expected rental income is only recognized up to 75%, and a lease agreement or appraisal rent schedule is required (freddiemac.com).

The second is actual rental profitability. The average rent in Concord is estimated to be between $1,751 and $1,800 per month as of 2026 (RentCafe, Rentometer). A one-bedroom unit averages about $1,487, while a two-bedroom unit is around $1,846, reflecting an increase of about 10% compared to the previous year. About 71% of rental listings fall within the $1,501 to $2,000 range, and 43% of all households in Concord are renters. Recent market trends show that rental price increases are outpacing purchase price increases.

The third is property taxes. The overall property tax rate in Concord is $29.11 per $1,000 of assessed value for the 2025 tax year, which includes $10.18 for the city, $2.54 for the county, $14.81 for the school district, and $1.58 for state education taxes (Concord Monitor). When converted to an effective tax rate, this amounts to 2.77%, which is higher than New Hampshire's median of 1.82% and nearly three times the national median of 1.02%. For a home assessed at $350,000, the annual property tax would exceed $10,000. New Hampshire relies on property taxes to fund its budget, as it has no income or sales tax, so calculations can vary significantly compared to other states.

New Hampshire is a state without rent control. Recently, a bill allowing local governments to implement rent control was defeated in the state house (hemlane.com). Month-to-month rentals typically allow for increases with 30 days' notice, but some municipalities, like Portsmouth, require 60 days' notice, so it's essential to check by city. The security deposit cap is either one month's rent or $100, whichever is greater, and retaliatory rent increases are prohibited.

If management is outsourced, the typical fee ranges from 8% to 12% of the monthly rent. Landlord insurance differs from standard homeowners insurance, and premiums are generally higher, which should also be factored in. A common industry standard is to set aside about 1% of the annual property value for maintenance costs, and calculating the cap rate can help compare profitability with properties in other areas.

The fourth item to check is vacancy rates. Concord, being the state capital of New Hampshire, has steady demand from the state government, hospitals, and universities, so long vacancies are not common. However, this can vary based on the property's location and condition, so it's advisable to check recent listing periods for nearby properties. When calculating the cap rate, it's important to consider that property taxes can significantly impact net operating income, so as not to overestimate actual returns. Compared to nearby Manchester, while purchase prices may be lower, it's necessary to verify if property tax rates are also lower on a case-by-case basis.

If you plan to transition to another investment property, it's worth noting that you can defer capital gains tax through a 1031 exchange (irs.gov). Focusing solely on the down payment can lead to overlooking the property tax structure, so if you're considering investment properties in Concord, be sure to include property taxes in your monthly cash flow calculations. This is not investment or legal advice, and consulting a professional before finalizing any contracts is recommended.