1st Advantage MortgageHome / States / New Hampshire / Derry
New Hampshire market guide
DSCR loans in Derry, NH
Rental financing for Derry investors, qualified on the property's rent.
Derry is a NH market where the rent-to-payment ratio decides the loan. Median rent is $1,547, median home value is $432,000 and 30% of households rent.
What the numbers say about Derry
For Derry, the latest five-year ACS shows a median gross rent of $1,547 (close to the New Hampshire median of $1,491) and a median owner-occupied value of $432,000 (close to the New Hampshire median of $402,500). The gross rent-to-value ratio for Derry works out to 4.3% (twelve months of median rent divided by median value), a thin gross ratio, which tells you purchase prices are high relative to rent. The figure combines all rental types with all owner-occupied homes, so it is a screening number and not an appraisal.
| Indicator | New Hampshire | Derry | Difference |
|---|---|---|---|
| Annual property tax bill, median | $6,667 | $8,103 | +22% |
| Household income, median | $99,031 | $108,944 | +10% |
| Typical owner-occupied value | $402,500 | $432,000 | +7% |
| Typical monthly rent | $1,491 | $1,547 | +4% |
| Share in 2-4 unit buildings | 10.5% | 7.5% | -28% |
| Share of homes detached | 63.3% | 53.9% | -15% |
| Long commuters, 45 min plus | 17.2% | 23.8% | +38% |
| Degree holders, age 25+ | 40.6% | 37.4% | -8% |
| Workers on their own account | 9.3% | 7.9% | -15% |
| Renters paying 30%+ of income | 48.2% | 51.6% | +7% |
| Units sitting vacant | 14.3% | 9.4% | -34% |
| Typical construction year | 1979 | 1983 | |
| Annual rent divided by value | 4.4% | 4.3% | -3% |
| Tax as a share of home value | 1.66% | 1.88% | +13% |
| Residents (Census estimate) | 1,394,868 | 34,116 |
Derry is an owner-heavy city: 70% of households own, and renters are just 29.8% (about 10% above the New Hampshire median of 27%). Tenant demand is narrower and concentrated in pockets. Median household income is $108,944, about 10% above the New Hampshire median of $99,031, and 52% of renter households pay 30 percent or more of income on rent.
Homes, buildings and vacancies in Derry
By structure type, Derry is 54% detached, 8% in two to four unit buildings and 8% in five to 19 unit buildings, with manufactured homes at 2%. Homes here date to 1983 at the median, which is old enough to need system replacement but modern enough to avoid the worst surprises.
The Census counts 9% of Derry housing units as vacant, with a rental vacancy figure of 12.2%.
Reading Derry as an investor
With only 4.3% gross yield, Derry buyers often rely on appreciation as part of the plan, and a lender will want the ratio to clear without it. A median build year of 1983 suggests moderate repair budgets with the usual replacement cycles. With renters at 30% of households, plan for a longer marketing period and a smaller tenant pool than in a renter-heavy city.
Taxes, insurance and hazards in Derry
In Derry the median tax bill for an owner-occupied home is $8,103, or about 1.88% of value (New Hampshire overall: 1.66%). That bill is about 22% above the New Hampshire median of $6,667. In rent terms, the tax bill equals roughly 44% of twelve months of median rent.
County-level hazard data from FEMA (National Risk Index 1.20) shows Rockingham County with relatively moderate overall risk and coastal flooding (relatively high), ice storms (relatively high) and riverine flooding (relatively moderate) at the top of the list.
| Hazard in Rockingham County, FEMA index | Level |
|---|---|
| Hurricanes exposure | Relatively Moderate |
| Riverine flooding exposure | Relatively Moderate |
| Ice storms exposure | Relatively High |
| Coastal flooding exposure | Relatively High |
| Social vulnerability score | Very Low |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
A Derry landlord policy is priced on roof, age, wiring and location, and the annual premium divided by twelve lands in the payment the lender tests.
What the Derry medians allow
At the city medians a DSCR file in Derry has $872 a month after taxes to cover principal, interest, insurance and dues if the ratio is 1.00, or $562 if the ratio is 1.25. Those two numbers show why insurance quotes and tax estimates come first.
What NH law and Derry require of landlords
This page does not claim to list every Derry rental ordinance. Before you buy, call the city's planning or code office and Rockingham County to ask about rental registration, inspections and short-term rental permits, and read any association declaration. Nightly stays carry state tax in New Hampshire. New Hampshire's Meals and Rooms tax covers residential rentals of under 185 consecutive days, so an operator needs an operator's license, displays it on the property and includes the license number in advertisements, and Airbnb collects the tax on stays of 184 nights or fewer.
The return clock runs 30 days from move-out in New Hampshire, so Derry landlords should keep move-in photos and repair receipts.
Derry next to nearby cities
Prices in the comparison range from $365,600 in Manchester to $505,200 in Londonderry, with Derry at $432,000.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Hudson | 17% | $6,636 | $438,900 | 25,557 | $1,735 |
| Manchester | 51% | $5,922 | $365,600 | 115,643 | $1,564 |
| Salem | 24% | $6,992 | $473,300 | 30,964 | $1,625 |
| Londonderry | 14% | $8,069 | $505,200 | 26,685 | $1,803 |
| Derry | 30% | $8,103 | $432,000 | 34,116 | $1,547 |
Employers and institutions near Derry rentals
About 7.9% of Derry workers are self-employed, the kind of borrowers whose tax returns understate cash flow and who often prefer a loan sized on rent. On the workforce side, government workers are about 12% of employment, 37% of adults hold a bachelor's degree or higher and 24% of commuters travel 45 minutes or more.
Among the employers recorded for Derry for 2020: Derry Cooperative School District, HCA Health Services of New Hampshire (Parkland Medical Center), Pinkerton Academy, Town of Derry and Walmart. Those payrolls shape which neighborhoods lease fastest. Wikipedia's entry for Derry notes interstate access via I-93 and air service through Manchester-Boston Regional Airport, a practical point for tenants and owners alike.
Putting a Derry file together
Bring the Derry numbers to a loan officer: the rent, the taxes, the insurance and your reserves. Apply online or ask for a quote, and use the calculator to preview the ratio.
More New Hampshire markets
- All New Hampshire DSCR loans
- DSCR loans in Londonderry, NH
- DSCR loans in Salem, NH
- DSCR loans in Manchester, NH
- DSCR loans in Hudson, NH
- Every market we cover
Where we checked
- Deposit statute: RSA 540-A:5, I-II; 540-A:6, I-IV; 540-A:7, I-II; 540-A:8, I-III
- NH Department of Revenue Administration, meals and rentals tax
- American Community Survey tables, New Hampshire
- National Risk Index entry, Rockingham County
- Background reading: Derry, New Hampshire
All Derry statistics are ACS five-year survey estimates from 2020 to 2024. For New Hampshire tenant law we used RedFlagLease under CC BY 4.0 plus the linked statutes. Our check date is October 2026, so look for newer Derry rules before you commit.
Pre-offer checklist
Before you commit on a Derry deal, confirm the rent with the lease or a market estimate, price the insurance for the exact address, and check how the taxes may change after the sale, so the ratio you run matches the one the lender calculates.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
How does a lender pick the rent for a Derry DSCR file?
A signed lease or the appraiser's rent schedule supplies the rent, depending on the program, and $1,547 is the Census median for Derry renters, only a benchmark.
Do taxes and insurance count in the Derry DSCR ratio?
Taxes, insurance and dues are inside the payment the lender tests. Run $1,547 through a 1.25 ratio and the ceiling is about $1,238; subtract $675 for median taxes and $562 remains.
Are Derry property taxes high for New Hampshire?
About $8,103 a year at the median, which is 1.88% of value and about 22% above the New Hampshire median of $6,667. Reassessment after a purchase can move that number, so get an estimate for the actual price.
Do DSCR lenders count short-term rental income in Derry?
Yes on programs built for it, once the use is lawful in Derry. Gather twelve months of statements or a third-party projection, and have New Hampshire tax registration squared away.
When must a Derry landlord return a deposit?
Return is due within 30 days after the tenant leaves. The governing section is RSA 540-A:5, I-II; 540-A:6, I-IV; 540-A:7, I-II; 540-A:8, I-III.
Should I worry about hazards at a Derry property?
FEMA's National Risk Index rates the county's overall natural hazard risk as relatively moderate. That is a county-level view, so check the FEMA flood map and an insurance quote for the exact Derry address.
Can a company be the borrower on a Derry purchase?
An individual can borrow too. If you prefer an entity for the Derry purchase, expect to provide formation documents and sign a personal guaranty.