Location: Granville County, NC | Metro: Durham-Chapel Hill, NC HUD Metro FMR Area
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 | $1,280 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $301,839 | 0.51% | F |
| 3BR | $1,910 | $396,761 | 0.48% | F |
| 4BR | $2,280 | $601,003 | 0.38% | F |
U.S. Census Bureau data (2024)
In ZIP code 27572, located in Rougemont, North Carolina, within Person County, the economics of Section 8 housing can be clearly defined using the SAFMR (Small Area Fair Market Rent) and local market rent figures. For a two-bedroom apartment in this specific ZIP, the SAFMR for FY 2024 is set at $1190. This is the maximum amount that the housing authority will pay on behalf of a tenant who qualifies for a Section 8 voucher. However, the local market rent for a similar unit is recorded at $791 according to the Census ACS data.
The SAFMR being higher than the local market rent suggests that landlords in ZIP 27572 might find Section 8 vouchers advantageous, but it's important to understand the components involved in the actual payment. A voucher holder typically pays 30% of their adjusted income toward rent. For simplicity, let’s assume an average adjusted income of $1500 per month for a tenant in this area, which would mean they pay $450 toward rent. The remainder of the rent is subsidized by the government, up to the SAFMR limit.
To calculate the exact reimbursement, subtract the tenant's portion ($450) from the SAFMR ($1190), leaving $740 as the subsidy amount. However, this does not account for utility allowances. Utility allowances vary but generally range between $200-$300 per month. Adding a conservative $250 for utilities to the subsidy amount brings the total to $990.
This means that if a landlord charges the SAFMR of $1190 for a two-bedroom apartment, they will receive $990 from the housing authority plus $450 from the tenant, totaling $1440. This exceeds the local market rent of $791 significantly. Conversely, if a landlord decides to charge only the local market rent of $791, the housing authority will still reimburse up to $1190, leading to a surplus.
The typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 27572, considering the SAFMR and local market rent, is a surplus of $400 per month. This surplus occurs because the SAFMR is higher than the local market rent, meaning landlords can charge less than the SAFMR and still receive the higher subsidy amount from the housing authority.
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.