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 | $1,090 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $199,478 | 0.61% | D |
| 3BR | $1,500 | $313,252 | 0.48% | F |
| 4BR | $1,980 | $411,951 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 27504 (Benson, NC) provides insight into potential investment returns under different rental conditions. The Fair Market Rent (FMR) for a 2-bedroom unit in FY 2024 is set at $1280 per month. Using this figure, the annualized income would be $15,360. Against the median home value of $320,069, this implies a gross yield of approximately 4.8%. This calculation is based on the assumption that the property is rented at the FMR rate.
In contrast, the Zillow Observed Rent Index (ZORI) indicates a market rent of $1,775 per month for a similar unit. If we use this rate, the annualized income would be $21,300. With the same median home value, this translates to a gross yield of about 6.65%. This scenario reflects the higher rent that could potentially be achieved if the market supports it.
Given the 26.5% renter density in the area, it's important to consider how competitive the rental market is. The N/A-day DOM (Days on Market) suggests that there is no recent data available regarding how quickly properties are being rented out, which can affect the likelihood of securing tenants at either the FMR or market rates.
The gross yield of 6.65%, derived from the market rent, is more realistic for investors looking to maximize returns. However, achieving this higher rent depends on the local demand and competition. The lower gross yield of 4.8%, based on the FMR, represents a safer but less lucrative option, particularly relevant for those interested in long-term stable cash flows or government-backed rental programs.
To summarize, the gross yield from renting at the FMR is approximately 4.8%, while renting at the market rate could achieve a gross yield of around 6.65%. Investors should weigh these yields against the local rental market dynamics and their risk tolerance.
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.