Section 8 Fair Market Rent (FMR) for ZIP 27834 - 2027

Investment Score for ZIP 27834

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$950
1 Bedroom	$960
2 Bedrooms	$1,160
3 Bedrooms	$1,510
4 Bedrooms	$1,900
5 Bedrooms	$2,204
6 Bedrooms	$2,468
7 Bedrooms	$2,665
8 Bedrooms	$2,798

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$960	$100,395	0.96%	C
2BR	$1,160	$136,980	0.85%	C
3BR	$1,510	$221,398	0.68%	D
4BR	$1,900	$347,111	0.55%	F
5BR	$2,204	$473,648	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27834 (Greenville, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27834 is set by HUD for 2026, providing guidelines for rental costs that are affordable for low-income households. For a two-bedroom unit, the FMR is $1120, which represents 27.5% of the median household income in Greenville, NC. However, the actual rental market in Greenville is significantly higher, with a Zillow median price for a two-bedroom property at $137,722. This translates to a price-to-FMR ratio of 10.2x, indicating that the actual market rents are far above the FMR levels. This disparity creates significant constraints for voucher holders. The voucher program aims to cover up to 40% of the FMR, but with actual rents being so much higher, many voucher recipients may struggle to find units that accept their vouchers and fall within the allowable rent range. For example, a voucher holder would be expected to pay around $672 per month for a two-bedroom unit, which is only about 48.5% of the actual market rent ($1120). This means landlords who accept Section 8 vouchers must either lower their rents substantially or risk losing tenants due to the inability to afford the difference. #### Affordability & Renter Profile ZIP code 27834 has a population of 56,347, with 62.6% of residents being renters. This high percentage of renters suggests a strong demand for rental housing in the area. The occupancy rate stands at 88.9%, indicating that the majority of available units are occupied, but there is still some room for new tenants. Given the median household income of $48,935, affordability is a key issue for many residents. The high rent-to-income ratio, particularly for two-bedroom units, implies that the market is tight and potentially overpriced relative to the economic conditions of the area. A significant portion of the population may find it challenging to secure housing without financial assistance, such as Section 8 vouchers. The high rent-to-income ratio also indicates that the local economy might not support these elevated rental prices, leading to potential challenges for both renters and landlords. #### Investor Angle From an investor perspective, the ZIP code 27834 presents a mixed picture when considering the cash flow potential at FMR levels. The FMR for a two-bedroom unit is $1120, while the actual market rent is approximately $137,722. At FMR levels, investors would likely face negative cash flow due to the gap between the FMR and market rents. Additionally, the high price-to-FMR ratio suggests that properties are overvalued compared to what they can realistically rent for under the voucher program. Given the tight market and high rent-to-income ratio, the investment grade for this ZIP code is moderate. While there is a substantial demand for rental housing, the high cost of entry into the market and the likelihood of needing to accept lower rents if participating in the Section 8 program could impact profitability. Investors should carefully consider the balance between acquisition costs and potential rental income when evaluating opportunities in this area. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units, such as one-bedroom apartments, where the FMR is $920. These units are more likely to be rented out at FMR levels without significant loss of potential income. Additionally, the lower FMR for smaller units may make them more attractive to voucher holders, reducing vacancy rates. 2. **Consider Location-Specific Strategies**: Within ZIP code 27834, certain neighborhoods may have more affordable housing options. Investors should conduct a detailed neighborhood analysis to identify areas where the actual rents are closer to the FMR. This could involve looking at older, less expensive properties or those located slightly further from the city center. 3. **Engage with Local Housing Authorities**: To maximize the chances of securing tenants with Section 8 vouchers, investors should establish relationships with local housing authorities. Understanding the local rules and regulations regarding voucher acceptance can help navigate the complexities of the program and ensure smoother tenant placement. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 27834 is to **Hold**. The high price-to-FMR ratio and tight market conditions suggest that acquiring properties at current market values would likely result in negative cash flow when renting at FMR levels. However, existing investors with properties already in the area may benefit from the high demand for rental housing, especially if they can position their units to attract voucher holders effectively. New investors should proceed with caution and consider alternative markets with a better alignment between FMR and actual market rents.

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.