Location: Burlington, NC | Metro: Burlington, NC MSA
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 | $920 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,510 | $294,521 | 0.51% | F |
| 4BR | $1,780 | $366,960 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 27258 hinges on the significant gap between the Fair Market Rent (FMR) set at $1040 for fiscal year 2024 and the actual market rent reported at $896 according to the Census ACS. This gap is $144, representing a 16.06% difference.
Given that the FMR exceeds the market rent, this makes ZIP 27258 a prime yield play for landlords and small-portfolio investors who accept Section 8 vouchers. The higher reimbursement rate ensures a steady income stream above what the open market offers, thus enhancing profitability.
The analysis is anchored in the broader context of ZIP 27258: 18.4% of residents are renters, the median home value stands at $323,663, and the median income is $78,079. These figures indicate a mixed housing market where voucher tenants can provide a reliable source of income, particularly for properties that might otherwise struggle to command market rents.
The discrepancy between FMR and market rent also suggests that landlords could potentially offer lower rents to attract non-voucher tenants while still receiving the higher reimbursement rate from the government. This strategy could increase occupancy rates and reduce vacancy periods, further improving investment yields.
In summary, the gap between FMR and market rent in ZIP 27258 presents a clear opportunity for landlords to maximize their returns through Section 8 participation, given the stable financial backing and the potential to undercut market rates without sacrificing income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.