Location: Harnett County, NC | Metro: Raleigh-Cary, 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 | $1,060 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $213,955 | 0.57% | F |
| 3BR | $1,500 | $311,757 | 0.48% | F |
| 4BR | $1,980 | $391,803 | 0.51% | F |
U.S. Census Bureau data (2024)
In analyzing the potential of investing in ZIP code 27501, Angier, NC, under the Section 8 program, several key concerns arise that need addressing based on the data available.
The first objection is whether the Fair Market Rent (FMR) of $1,280 for the fiscal year 2024 will sufficiently cover the mortgage on a home priced at $332,258. This concern is valid, but let's break it down. The average interest rate on a 30-year fixed mortgage is currently around 6.5%. Using this rate, the monthly mortgage payment on a $332,258 home would be approximately $2,000. Thus, the FMR of $1,280 falls short by nearly $720 per month. However, it's important to note that property taxes and insurance can also be covered by the landlord, which might reduce the shortfall. Additionally, the actual mortgage payment can vary depending on the borrower's credit score and other factors.
A second objection centers on the renter demand in Angier, NC, which stands at 22.1%. This figure suggests that only a little over one-fifth of the population is actively seeking rental housing. For a landlord or small-portfolio investor, this could imply limited demand. To put this into perspective, a 22.1% rental rate is below the national average, which typically hovers around 35%. Therefore, while there is demand, it may not be as robust as in areas with higher rental rates. This necessitates a careful assessment of the local rental market to ensure steady occupancy rates.
The third and final objection pertains to the ability of Section 8 vouchers to keep pace with market rents, which are currently at $1,944. The FMR of $1,280 is significantly lower than this amount, indicating a gap between what voucher holders can pay and the actual market rent. While the federal government periodically adjusts the FMR to reflect changes in the cost of living and housing costs, these adjustments do not always align with local market conditions. In Angier, NC, landlords who rely solely on Section 8 vouchers might find themselves needing to subsidize the difference between the voucher amount and the market rent, which could impact profitability.
To conclude, investing in ZIP 27501 under the Section 8 program requires a thorough understanding of the local rental market dynamics. The FMR does not fully cover the mortgage on a $332,258 home, the rental demand is moderate, and the voucher amounts lag behind market rents. These points highlight the need for investors to carefully balance their expectations and financial planning against the realities presented by the data.
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.