Location: Rocky Mount, 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $223,322 | 0.67% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 27816, part of the Rocky Mount, NC MSA, reveals critical insights for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 27816 in fiscal year 2024 is set at $1280. However, the Census ACS data indicates that the current market rent stands at $873. This discrepancy suggests that landlords may find it challenging to justify higher rents based on the current market conditions.
Regarding the affordability of acquisitions, the median home value in ZIP 27816 is $227,964. Unfortunately, the data does not provide the number of days on the market (DOM) or the percentage of homes that have been subject to price cuts. Despite this lack of detail, the median home value offers a baseline for investment costs, which can be compared against potential rental income.
The third question concerns tenant demand. With a total population of 3,019, the ZIP code has a significant renter share of 30.8%. This means that approximately 929 residents are likely seeking rental housing. While the population is relatively small, the renter share suggests a steady demand for rental properties.
In summary, the rent math in ZIP 27816 does not align favorably with current market conditions, as the FMR exceeds the actual market rent by nearly 50%. Acquisition costs, represented by the median home value, are reasonable but without additional metrics on DOM and price-cut shares, it's difficult to assess the overall affordability of buying properties. Tenant demand is present, given the substantial renter share, but the limited population size means that the market is niche and competitive. Landlords should carefully consider these factors before investing in this ZIP code.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.