Location: Wilson County, NC | Metro: Goldsboro, 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 | $177,270 | 0.69% | D |
| 3BR | $1,500 | $271,170 | 0.55% | F |
| 4BR | $1,980 | $347,283 | 0.57% | F |
U.S. Census Bureau data (2024)
A skeptical investor might raise several concerns regarding investing in ZIP 27542 (Kenly, NC). Here are three common objections and their answers based on available data.
Objection 1: Will Fair Market Rent (FMR) of $1280 (for ZIP 27542 in fiscal year 2024) cover the mortgage on a $268,964 home?
The FMR does not directly cover the mortgage payment. However, it provides a benchmark for rental income. To determine if the FMR can cover the mortgage, consider the typical mortgage rate. As of recent data, a 30-year fixed-rate mortgage might be around 5%. A $268,964 home would have a monthly mortgage payment of approximately $1,400, which is higher than the FMR. Therefore, relying solely on FMR would not fully cover the mortgage payment. Landlords need to factor in additional costs and potential rental increases to ensure profitability.
Objection 2: Is there enough renter demand at 25.4%?
The 25.4% represents the percentage of households that are renters. This indicates a moderate level of demand. However, the actual number of renters and their willingness to pay the FMR must be considered. According to the data, the median sales price in ZIP 27542 is $244,900, suggesting a relatively affordable housing market. With the FMR set at $1280, it's reasonable to assume that there could be sufficient demand among the renter population to support this investment, especially considering the lower end of the housing market.
Objection 3: Will vouchers keep pace with $757 market rents?
The Housing Choice Voucher program aims to provide assistance to low-income families. While the voucher amount might be lower than the market rent of $757, landlords can negotiate with voucher holders to cover the difference. The program is designed to adjust to market conditions, though the exact pace of adjustment is not specified in the data. It's important for landlords to understand the process and the local administration of the voucher program to ensure steady income.
In conclusion, while the data shows some challenges, such as the FMR being lower than the expected mortgage payment, it also suggests that there is a reasonable demand for rental properties and that the Housing Choice Voucher program can provide some support. Investors should carefully evaluate the overall financial picture, including potential rental increases and other sources of income, before making a decision.
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.