Location: Northampton County, NC | Metro: Northampton County, NC
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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $70,604 | 1.43% | A |
| 3BR | $1,210 | $121,085 | 1% | C |
U.S. Census Bureau data (2024)
In ZIP code 27820 in Conway, NC, there are several potential issues that could arise for a landlord considering Section 8 investments. Tenant turnover is a significant concern due to the disparity between the market rent of $682 and the Fair Market Rent (FMR) for the area, which is set at $930 for fiscal year 2026. This difference can lead to higher turnover rates as tenants might struggle to afford the gap between the subsidized amount and the actual market rent.
Vacancy exposure is another critical risk factor. The Days on Market (DOM) figure is currently unavailable, which makes it difficult to predict how long a property might remain vacant. Given the lower market rent compared to FMR, there's a possibility that vacancies could occur if the subsidy does not cover the full market value, potentially leading to prolonged periods of non-income generation.
Deferred maintenance exposure is also a consideration. With a typical home value of $109,328 and a median income of $50,909, residents might have limited financial resources to invest in regular upkeep. This could result in higher repair costs and maintenance issues for landlords, especially if they rely on the lower market rent to manage their properties.
However, these risks must be weighed against the high concentration of renters in the area, with 27.1% of the population being renters. High renter density typically correlates with a higher demand for housing vouchers, such as Section 8, which can provide a steady stream of rental income. The presence of a substantial number of renters increases the likelihood of finding tenants who are willing and able to use their vouchers to secure housing.
A final point to consider is the local economic conditions. Although the median income is relatively low, the demand for affordable housing suggests that there is a need for properties that can accommodate Section 8 tenants. This demand can help mitigate some of the risks associated with vacancy and maintenance, as landlords can expect a consistent pool of interested tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.