Location: Warren County, NC | Metro: Vance County, NC
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 | $770 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $197,835 | 0.64% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 27563 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $930 per month for fiscal year 2026. However, the local market rent, according to the Census ACS, is significantly lower at $688 per month.
A landlord participating in the Section 8 program receives a voucher payment that covers part of the rent. This payment is calculated based on the difference between the SAFMR and the tenant's portion of the rent, which is typically 30% of their income. Additionally, utility allowances are factored into the total payment.
To illustrate, let’s assume a tenant's income is such that their portion of the rent would be $200 per month. The remaining amount up to the SAFMR of $930 would be covered by the voucher. Thus, the landlord would receive:
In addition to the rent reimbursement, there are utility allowances. These vary but generally cover some of the tenant’s utility costs, ensuring the tenant does not pay more than 30% of their income towards both rent and utilities combined.
Given the local market rent of $688, the landlord would receive $730 from the voucher program plus any applicable utility allowance. This means that the landlord could potentially charge more than the local market rent without losing tenants to other properties, as long as the total cost to the tenant (rent + utilities) does not exceed 30% of their income.
However, the actual reimbursement gap or surplus can be determined by comparing the voucher reimbursement to the local market rent. In ZIP 27563, if the landlord charges the local market rent of $688, the voucher reimbursement of $730 exceeds the market rent by $42. This represents a surplus for the landlord, assuming they do not increase the rent above the market rate.
If the landlord chooses to charge the SAFMR rate of $930, then the tenant would only be responsible for paying their portion ($200), and the voucher would cover the rest. This would result in a gap where the landlord is receiving less than the SAFMR but still more than the local market rent, thus maintaining profitability while providing affordable housing options.
In summary, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 27563 is a surplus of $42 per month when charging the local market rent of $688, making it financially viable for landlords to participate in the Section 8 program.
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.