Location: Beaufort County, NC | Metro: Greenville, 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 | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $155,717 | 0.65% | D |
| 3BR | $1,320 | $284,408 | 0.46% | F |
| 4BR | $1,660 | $459,748 | 0.36% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 27837, centered around Grimesland, North Carolina, highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $970, whereas the Census American Community Survey (ACS) indicates that the market rent stands at $790. This represents a difference of $180, or approximately 23%.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to maximize their yields. Voucher tenants, who are subsidized by the government up to the FMR, provide a reliable source of income that is higher than what could be obtained through open-market rents. In Grimesland, where only 18.9% of residents are renters and the median home value is $320,753, the opportunity to secure a steady stream of rental income at above-market rates is particularly attractive.
The median income in Grimesland is $69,830, which suggests that while the area is not impoverished, it does have a segment of the population that relies on housing vouchers to afford living spaces. The higher subsidy rate allows landlords to charge closer to the FMR without making the property unaffordable for tenants. This makes the area a compelling investment for those looking to capitalize on the discrepancy between FMR and market rents.
However, it's important to note that accepting voucher tenants comes with certain responsibilities and potential costs. Landlords must ensure that their properties meet Housing Quality Standards (HQS), which can require maintenance and upgrades. Additionally, the administrative process of participating in the Section 8 program can be time-consuming and complex. Despite these challenges, the financial benefits of renting at the FMR level make the investment worthwhile for many landlords.
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.