Location: Caswell County, NC | Metro: Person 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 | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $282,364 | 0.36% | F |
| 3BR | $1,340 | $344,454 | 0.39% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $950 for ZIP 27291 (Leasburg, NC) in fiscal year 2024 can sufficiently cover the mortgage on a home priced at $304,326. To evaluate this, consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of around 5%, the monthly payment on a $304,326 home would be approximately $1,630. This means that the FMR alone does not cover the mortgage, highlighting the need for supplemental income or additional units to meet financial obligations.
The investor may also wonder if the rental market in Leasburg, NC, is robust enough to sustain investment, given that only 10.1% of the population are renters. While this percentage seems low, it's important to note that the rental market is still active. The rental vacancy rate in the area is relatively stable, indicating that the demand for rental properties is consistent with the supply. However, the data does not provide a complete picture of the rental market dynamics, such as the number of rental listings or the average time it takes to lease a property.
Another concern could be whether Section 8 Housing Choice Vouchers will keep up with the market rents, which are currently at $816. The voucher amount in ZIP 27291 is set below the market rent, but this is a common scenario across many areas. The U.S. Department of Housing and Urban Development (HUD) adjusts voucher amounts periodically based on local market conditions. In the past, HUD has increased voucher amounts to match inflation and rising housing costs. However, the data does not specify future adjustments, so it's crucial to monitor local HUD announcements for updates.
In conclusion, while the FMR of $950 does not fully cover the mortgage on a $304,326 home, there are other factors to consider, such as the potential for multiple units or additional income sources. The rental market, though not dominated by renters, shows signs of stability. Lastly, although the current voucher amount is lower than market rents, historical trends suggest that adjustments will be made to align with cost-of-living increases. These points should be weighed against the investor's broader portfolio strategy and risk tolerance.
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.