Location: Halifax County, NC | Metro: Halifax 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 | $820 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,440 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $69,531 | 1.52% | A+ |
| 3BR | $1,440 | $129,554 | 1.11% | B |
| 4BR | $1,660 | $239,018 | 0.69% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 27839, located in Halifax, NC, might raise several concerns regarding the feasibility of investing in properties under the Section 8 program. Here, we address these concerns with the available data.
Will Fair Market Rent (FMR) of $960 (metro FY 2026) cover the mortgage on a $97,336 home?
The FMR of $960 is indeed a critical figure when assessing whether an investment property can be financially viable under the Section 8 program. To determine if it covers the mortgage, we must consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage with an interest rate of 5%, the monthly payment on a $97,336 home would be approximately $534. This leaves a significant portion of the FMR ($960 - $534 = $426) to cover additional expenses such as maintenance, property taxes, and insurance. While the FMR does exceed the mortgage payment, the gap might be tight for some investors, especially given other obligations.
Is there enough renter demand at 30.2%?
The 30.2% rental occupancy rate suggests that a little over a third of the housing units in ZIP 27839 are rented. This percentage alone does not provide a complete picture of the rental market's health. However, it indicates a moderate level of demand, which is essential for the success of any rental property. To further assess the demand, one should look into the local job market and population trends. Unfortunately, the data provided does not include these details, so we cannot definitively conclude the strength of the rental market based solely on the occupancy rate.
Will vouchers keep pace with $926 market rents?
The average market rent of $926 in ZIP 27839 is slightly above the FMR. Vouchers are designed to help tenants pay for housing up to the FMR, meaning that landlords might have to adjust their expectations or seek ways to reduce costs to align with the voucher amount. It's crucial to note that voucher amounts can change annually based on HUD adjustments, which could either increase or decrease the subsidy. In the case where the voucher amount remains stable at $960, landlords would still need to ensure that their rental rates do not exceed this limit to remain competitive and attractive to voucher holders. If the market rent continues to rise, it could create pressure on landlords to either accept lower returns or risk losing tenants who rely on vouchers.
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.