Location: Rocky Mount, NC | Metro: Rocky Mount, 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 | $1,040 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $145,470 | 0.87% | C |
| 3BR | $1,690 | $220,305 | 0.77% | D |
| 4BR | $1,930 | $303,541 | 0.64% | D |
| 5BR | $2,239 | $322,242 | 0.69% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 27804 in Rocky Mount, NC, reveals a market that leans towards offering moderate yields with relatively stable cash flow characteristics. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $1,110, while the average market rent stands at $1,393. This indicates that landlords can expect to charge a premium over the FMR, enhancing their potential rental income.
However, the median home value of $227,711 suggests that property acquisition costs are significant. When considering these figures alongside the income level of $61,359, it becomes evident that the area supports a decent level of affordability for renters, but not to the extent that would categorize it as a high-yield market. The ratio of renters at 46.0% implies a substantial portion of the population is already committed to rental housing, which provides a foundation for demand stability.
The days on market (DOM) figure of 52 days for properties indicates a reasonable turnover rate. While not exceptionally low, this metric suggests that once a property is listed for rent, it will likely be occupied within a couple of months. This balance between yield and stability places ZIP 27804 in a category where it offers opportunities for steady cash flow rather than quick flips. Landlords and small-portfolio investors should find this environment conducive to long-term investment strategies, given the reliable demand and moderate rental premiums.
To summarize, the rental market in ZIP 27804 is best described as a steady-cashflow zone. The rental income potential, driven by the FMR and market rents, combined with the median income and renter ratio, supports a sustainable investment approach. Quick flips or high-risk, high-reward strategies are less likely to succeed here compared to markets with higher instability and potentially higher yields.
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.