Location: Warren 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $163,761 | 0.74% | D |
| 3BR | $1,500 | $255,442 | 0.59% | F |
| 4BR | $1,980 | $329,220 | 0.6% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 27537, located in Henderson, NC, does not favor landlords. The Fair Market Rent (FMR) for the area set at $1280 for fiscal year 2024 exceeds the average market rent reported by the Census Bureau's American Community Survey (ACS), which stands at $964. This discrepancy suggests that landlords may struggle to justify higher rents to tenants.
Acquisition costs in ZIP 27537 are relatively low, with a median home value of $243,454. However, the lack of data on days on market (DOM) and the fact that only 0.3% of homes have been listed with a price cut indicate that homes are not often discounted or available for extended periods. This implies that while homes are not overpriced, they may not be easily acquired at a discount.
Tenant demand in ZIP 27537 is moderate. With a total population of 24,708 and 26.8% of residents being renters, there is a reasonable pool of potential tenants. However, the demand is not exceptionally high, which could make it challenging to quickly fill vacancies.
Verdict: In ZIP 27537, the economic conditions present a mixed picture for landlords and small-portfolio investors. While the acquisition cost of homes is manageable, the disparity between FMR and actual market rent poses a significant challenge. Tenant demand is present but not robust enough to overcome the pricing issues. Investors should proceed with caution, ensuring they can operate profitably within the lower market rent range.
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.