This paper presents the continuation of experimental investigations conducted by the present authors to measure and compare the thermal and fluid dynamic performance of a residential hydronic air coil using nanofluids. The prior experiments were limited to testing only one volumetric concentration (1%) of aluminum oxide (Al2O3) nanofluid. They compared it with the base fluid, a 60% ethylene glycol/40% water mixture by mass (60% EG). The original tests revealed some deficiencies in the experimental setup, which was subsequently revised and improved. This paper summarizes the results of experiments from the improved test bed using three concentrations of Al2O3 nanofluids: 1, 2, and 3% volumetric concentrations prepared with an average particle size of 45 nm in a 60% EG dispersion. The test bed in these experiments simulates a small air handling system typical of heating, ventilation, and air conditioning (HVAC) applications in cold regions. Entering conditions for the air and liquid were selected to emulate typical commercial air handling systems operating in cold climates. Contrary to previous findings, our test results revealed that nanofluids did not perform as well as expected. Prior predictions from many analytical and numerical studies had promised significant performance gain. The performance of the 1% nanofluid was generally equal to that of the base fluid under identical inlet conditions. However, the performance of the 2% and 3% nanofluids was considerably lower than that of the base fluid. The higher concentration nanofluids exhibited heat rates up to 14.6% lower than the 60% EG and up to 44.3% lower heat transfer coefficient. The 1% Al2O3/60% EG exhibited a 100% higher pressure drop across the coil than the base fluid, considering equal heat output. This performance degradation was attributed to the inability to maintain nanofluid dispersion stability, agglomeration, and subsequent decline in the thermophysical properties.