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 | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $71,572 | 1.47% | A |
| 3BR | $1,250 | $119,445 | 1.05% | B |
U.S. Census Bureau data (2024)
If a landlord is considering buying a property in ZIP code 27832 (Gaston, NC) for Section 8 investment, they must evaluate several factors to make an informed decision. The first step is to determine if the Fair Market Rent (FMR) of $1,010 can cover the debt service on a property valued at $107,098. Debt service typically includes mortgage payments, insurance, taxes, and maintenance costs. To clear these expenses, the landlord would need to ensure that the rental income at the FMR rate is sufficient.
The second factor is comparing the market rent of $821 against the FMR. This comparison helps gauge whether the property can be rented out at the FMR rate or if it will struggle to attract tenants due to being overpriced relative to what the market can bear. If the market rent is below the FMR, it suggests a potential opportunity for Section 8 properties to be rented out at higher rates compared to non-assisted housing.
The third factor involves assessing the rental demand. In Gaston, NC, the rental population makes up 30.1% of the total population. However, the days on market (DOM) for rentals is listed as N/A, which means there isn't enough data to determine how quickly rental properties are turning over. This lack of information can make it challenging to predict the demand accurately.
Does FMR $1,010 clear debt service on a $107,098 property? It depends on the specifics of the mortgage and other costs. For a typical 30-year fixed-rate mortgage at around 5%, the monthly payment on a $107,098 property would be approximately $585. Adding property taxes, insurance, and maintenance, the total debt service might be around $700-$800 per month. At $1,010 FMR, the answer is generally yes, but landlords should verify their exact costs.
Is market rent $821 above, at, or below FMR? The market rent is below the FMR, indicating that Section 8 properties could potentially command rents closer to the FMR rate, making them more attractive investments compared to non-assisted housing.
Are 30.1% renters + N/A-day DOM enough demand? With 30.1% of the population renting, there is a substantial demand for rental properties. However, the absence of data on days on market means the landlord cannot fully assess how quickly properties are leased. This uncertainty suggests that while there is demand, the speed at which it can be met is unclear.
In summary, ZIP 27832 presents a mixed picture for Section 8 investment. The FMR is likely to cover debt service, and the market rent is below the FMR, suggesting potential for higher rents. The rental population percentage indicates demand, but the lack of DOM data introduces some risk regarding the leasing process. Landlords should consider these points carefully before making an investment decision.
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.