Location: Caswell County, NC | Metro: Rockingham 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 | $730 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $164,096 | 0.62% | D |
| 3BR | $1,270 | $246,862 | 0.51% | F |
U.S. Census Bureau data (2024)
In evaluating the investment potential of ZIP 27326, which encompasses Ruffin, NC, several key concerns arise for landlords and small-portfolio investors. Let's address these objections directly using the available data.
Objection 1: Will FMR $860 (zip FY 2024) cover the mortgage on a $212,943 home?
The Fair Market Rent (FMR) for ZIP 27326 in fiscal year 2024 is set at $860. This figure represents the average monthly rent that a tenant could reasonably be expected to pay. To determine if this amount will cover the mortgage on a home priced at $212,943, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an interest rate of around 4%, the monthly payment on such a property would be approximately $1,035. Therefore, the FMR of $860 does not fully cover the mortgage payment, leaving a shortfall of $175 per month. This indicates that relying solely on the FMR to finance a home purchase may not be sufficient without additional income sources or a lower interest rate scenario.
Objection 2: Is there enough renter demand at 12.0%?
The rental vacancy rate for ZIP 27326 stands at 12.0%. This percentage suggests that there is a moderate level of competition among landlords to attract tenants. A vacancy rate above 5-6% generally indicates a tenant-friendly market, meaning that finding renters might be challenging. However, it also implies that there is a significant pool of potential renters looking for housing. Landlords should focus on maintaining their properties to meet tenant expectations and ensure a steady occupancy rate. The high vacancy rate does not necessarily mean low demand but rather highlights the importance of competitive pricing and property maintenance.
Objection 3: Will vouchers keep pace with $650 market rents?
The market rent in ZIP 27326 is estimated at $650. Vouchers can provide a reliable source of income, but their adequacy depends on the specifics of the voucher program and the willingness of landlords to accept them. While the data does not explicitly state the value of vouchers in this area, it's important to note that voucher amounts are often adjusted annually based on local housing conditions. If the voucher values are close to the market rent of $650, they can be a viable option. However, landlords must weigh the benefits of accepting vouchers against any administrative complexities or delays in payments. It's advisable to research the specific voucher programs active in ZIP 27326 to make an informed decision.
The data provides insights into the financial feasibility of investing in ZIP 27326, particularly concerning rental income and demand. However, it does not offer a complete picture of all factors influencing the decision, such as the specifics of voucher programs or the potential for property appreciation. Investors should conduct further research and consider consulting with local real estate professionals to gain a comprehensive understanding before making an investment.
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.