Location: Rowan County, NC | Metro: Iredell County, NC HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,630 | $337,119 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 27013 are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $940. This SAFMR is specific to this ZIP code, meaning it reflects the local housing market conditions more accurately than broader county or metropolitan averages.
Local market rents, according to the Census ACS, average around $800 for a two-bedroom unit. When a tenant uses a Section 8 voucher, they typically contribute 30% of their adjusted income toward rent. The remaining amount is subsidized by the government, up to the SAFMR limit of $940.
To illustrate, let's assume a tenant has an adjusted monthly income of $1,500. Thirty percent of this income is $450, which the tenant would pay towards rent. The government then covers the difference between the tenant's contribution and the SAFMR, but only up to the actual rent charged. If the landlord charges $800, the government will cover $350 ($800 - $450), bringing the total payment to $800.
Utility allowances also play a role in the overall compensation. These allowances vary based on the type of unit and location, but they do not affect the base rent reimbursement directly. Instead, they provide additional funds to help cover utilities, which can be beneficial for landlords who wish to include utility costs in the rent.
In ZIP 27013, given the local market rent of $800 and the SAFMR of $940, landlords can expect a slight surplus when renting to Section 8 tenants. The surplus comes from the government covering the difference between the market rent and the tenant's contribution, up to the SAFMR limit. In this case, the typical reimbursement gap or surplus for a two-bedroom unit would be $140 per month ($940 SAFMR - $800 market rent).
This surplus allows landlords to potentially earn slightly above the local market rate without exceeding the SAFMR cap. It's important to note that while the SAFMR is $940, charging more than the local market rent of $800 could make it difficult to find tenants willing to use their vouchers in your units.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.