Location: Granville 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 | $1,160 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $266,929 | 0.49% | F |
| 3BR | $1,640 | $377,183 | 0.43% | F |
| 4BR | $2,200 | $497,695 | 0.44% | F |
| 5BR | $2,552 | $502,256 | 0.51% | F |
U.S. Census Bureau data (2024)
In Youngsville, NC, specifically ZIP code 27596, the economics of Section 8 housing can be quite different from the broader local market. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $1290. This figure is crucial because it represents the maximum amount that the Housing Choice Voucher program will pay for a unit in this area, reflecting the specific rental conditions of ZIP 27596.
The local market rent for a similar two-bedroom unit, as measured by ZORI (Zillow Observed Rent Index), is significantly higher at $2,083. This discrepancy highlights the difference between the actual market rates and the government-set rates. When a landlord participates in the Section 8 program, they agree to accept the SAFMR as payment for their property, which can sometimes fall short of covering all expenses.
To understand how the voucher payment works, consider the following breakdown:
Combining these elements, the total reimbursement a landlord might receive for a two-bedroom apartment under the Section 8 program could range from $1790 to $1890. However, given the local market rent of $2,083, there is a notable gap between what the landlord receives and the actual market value.
This leaves a reimbursement gap of about $193 to $293 per month for a landlord in ZIP 27596 who rents out a two-bedroom apartment under the Section 8 program. It's important to note that this gap does not account for any additional costs such as maintenance, repairs, or vacancy periods. Landlords must weigh these economic realities against the stability and support services provided by the Section 8 program when deciding whether to participate.
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.