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 |
|---|---|---|---|---|
| 3BR | $1,500 | $209,833 | 0.71% | D |
| 4BR | $1,980 | $265,654 | 0.75% | D |
U.S. Census Bureau data (2024)
The ZIP code 27589, with a population of 6,739, has a significant proportion of renters at 36.1%. This indicates that it is a renter-heavy area with potential for deep voucher demand. The median household income in this ZIP is $46,730, which is relatively modest compared to national averages.
A market rent of $840 in this area consumes approximately 18.0% of the median household income. This percentage suggests that while rent is a considerable expense, it remains manageable for most households without relying heavily on housing assistance programs.
However, when comparing the market rent to the Fair Market Rent (FMR) of $1,280 for FY 2024, it becomes evident that the current market rent is below the FMR. This discrepancy can be advantageous for landlords who accept Section 8 vouchers, as they can potentially attract tenants who qualify for higher voucher amounts due to the ZIP's lower market rates.
In ZIP 27589, landlords should anticipate a tenant profile characterized by a mix of individuals and families seeking affordable housing options. Many will likely rely on Section 8 vouchers to cover a substantial portion of their rent, given the economic conditions and the availability of rental properties. The combination of a high percentage of renters and a median income level that necessitates financial assistance makes this area particularly suitable for landlords willing to work with Section 8 tenants.
To conclude, the ZIP code 27589 presents itself as a location where landlords can effectively manage a portfolio of rental units by accepting Section 8 vouchers. With a significant number of renters and a median income that supports the need for housing subsidies, landlords can expect a steady demand from tenants looking for affordable housing solutions. The market rent being lower than the FMR also provides an opportunity for landlords to receive higher payments through voucher programs, ensuring a stable income stream.
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.