Student Boarding
For Sale
$850,000
50 Madbury Road, Durham, NH 03824
Well-maintained boarding house set up for eight students, with parking on a large lot near downtown.
Property Size2,973 SF
Price / SF$285.91
Days on Market52
Property Features for 50 Madbury Road
General Information
Standard status
Active
Size
2,973 SF
Property subtype
Multi Family
Zoning
RA
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$11,101
Building Details
Year Built
1935
Stories
3
Listing Agency:
Compass New England, LLC
(603) 319-4660
Listed By:
Robert Marchewka
(603) 319-4660
Source:
Laerrealty
Added: Jun 30
Changed: Aug 8
Last Checked: Aug 20 at 4:34AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Compass New England, LLC
Investment Insights
Based on property information with market context.
This well-maintained boarding house is currently configured to house eight students. The property is operated as a residential income use, with a proven student rental setup in place and ongoing use supporting its day-to-day functionality.
Set on a large lot with parking, the property offers practical on-site convenience. It is described as walkable to downtown, giving it an easy, local accessibility advantage for tenants who rely on nearby amenities and services.
For buyers seeking a small student housing asset, this property provides an immediate, purpose-built boarding arrangement for eight residents rather than a generic residential conversion. The listing also notes a current NOI of $64,000 and directs buyers to the broker for financial information. Investors and owner-operators can review operating history and current income details through the broker to determine fit and next steps based on their underwriting and business plan.
Set on a large lot with parking, the property offers practical on-site convenience. It is described as walkable to downtown, giving it an easy, local accessibility advantage for tenants who rely on nearby amenities and services.
For buyers seeking a small student housing asset, this property provides an immediate, purpose-built boarding arrangement for eight residents rather than a generic residential conversion. The listing also notes a current NOI of $64,000 and directs buyers to the broker for financial information. Investors and owner-operators can review operating history and current income details through the broker to determine fit and next steps based on their underwriting and business plan.
Key Highlights
- Boarding house built in 1935, currently set up for eight students
- Well‑maintained property used as a student boarding house with on‑site parking
- Large lot with parking and within walking distance to downtown
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$27,835
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.27%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$556,700
$556.7K
Cap Rate 7%
$397,643
$397.6K
Cap Rate 9%
$309,278
$309.3K
Market Conditions
NOI Build-Up for 2,973 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$52.4K $17.64/SF
− Vacancy
−$1.8K −$0.62/SF
EGI
$50.6K $17.02/SF
− OpEx
−$22.8K −$7.66/SF
NOI
$27.8K $9.36/SF
Area
Strafford County, NH
Vacancy
3.50%
Lease Rate
$17.64 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$556,700
Cap Rate 7%
$397,643
Cap Rate 9%
$309,278
Alternative Uses
Best Use
Apartment 5plus
$397.6K
$347.9K – $463.9K
NOI $27,835 @ 7.0% cap · market cap 3.27%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$795.4K
$696.0K – $927.9K
NOI $55,676 @ 7.0% cap · market cap 6.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
538
Businesses Nearby
Explore this area
Business Placement
Demographics for 03824, NH
15,498
Population
3,884
Households
4
Avg Household Size
25
Median Age
78%
College-Educated
98%
High-School Grad
22.4 sq mi
ZIP Area
692
Density / Sq Mi
$126,658
Median Household Income
$7,978
Median Earnings
$1,432
Median Rent
$469,900
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Well-maintained boarding house set up for eight students, with parking on a large lot near downtown.
Where is this apartment building located?
The property is located at 50 Madbury Road Durham, NH.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Boarding house built in 1935, currently set up for eight students; Well‑maintained property used as a student boarding house with on‑site parking; Large lot with parking and within walking distance to downtown
