Location: Granville County, NC | Metro: Granville County, NC
| Unit Size | Monthly FMR |
|---|---|
| Studio | $970 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 27582 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1,460, while the Census American Community Survey (ACS) reports the average market rent at $1,188. This means that the FMR is $272 higher than the market rent, representing an increase of approximately 22.9%.
This scenario, where the FMR exceeds the market rent, makes ZIP 27582 a prime location for landlords seeking to maximize their rental yields. Voucher tenants, who receive assistance through the Section 8 program, can help landlords achieve higher rents compared to what they might get from non-subsidized tenants. Given that only 29.6% of residents are renters, landlords have a smaller pool of potential tenants, making it advantageous to attract those who can pay closer to the FMR rate. The median household income of $54,375 suggests that many local residents may struggle to afford higher rents, further emphasizing the appeal of Section 8 tenants for landlords.
The cost of housing voucher tenants below open-market rates is minimal in this case, since the FMR is above the market rent. Landlords will not be losing out on potential income by accepting voucher tenants; rather, they stand to benefit from the guaranteed payment structure of the Section 8 program, which ensures timely rent payments. Additionally, the program covers a substantial portion of the rent, reducing the risk of financial loss due to unpaid rent.
In conclusion, ZIP 27582 presents a unique opportunity for landlords and small-portfolio investors to leverage the Section 8 program for better yields without compromising on tenant quality. The disparity between the FMR and market rent indicates that voucher tenants can provide a reliable source of income, aligning closely with the economic realities of the area.
Data Sources: FMR data from HUD (2027). 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.