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 | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $47,187 | 2.2% | A+ |
| 3BR | $1,240 | $83,618 | 1.48% | A |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 27831, located in Gaston, Northampton County, North Carolina, involve understanding the balance between the SAFMR (Small Area Fair Market Rent) and the local market rent. For a two-bedroom apartment, the SAFMR for FY 2026 is set at $1,050. This figure represents the maximum amount that the government will reimburse landlords for renting out their properties under the Section 8 program. However, the local market rent, according to the Census ACS data, is significantly lower at $774.
To walk a landlord through what a voucher actually pays, it's important to factor in the tenant portion and utility allowances. Under the Section 8 program, tenants are required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income for a household in this area, the tenant’s contribution would be calculated based on that percentage. Utility allowances can vary but typically cover a portion of the tenant's energy costs, which are not included in the SAFMR.
The SAFMR being set at $1,050 means that this rate is established specifically for this ZIP code, reflecting the unique economic conditions and rental market dynamics of the area. Landlords should note that while the SAFMR is the ceiling for government reimbursement, the actual payment they receive can be less if the tenant’s share plus utilities exceeds the SAFMR.
To illustrate, let's consider a scenario where a tenant's share is $300 and the utility allowance is $100. In this case, the total reimbursement would be $400 ($300 tenant share + $100 utility allowance), leaving the landlord to cover the remaining $650 of the $1,050 SAFMR. However, since the local market rent is $774, the landlord would still have a surplus of $124 over the market rate even after accounting for the tenant's share and utility allowance.
In summary, landlords in ZIP 27831 can expect the Section 8 program to reimburse up to $1,050 for a two-bedroom unit, with the actual amount paid being the sum of the tenant's share and any applicable utility allowances. Given the local market rent of $774, the typical reimbursement gap or surplus would result in a landlord receiving slightly more than the market rate, ensuring a stable and predictable 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.