Location: Warren 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 | $1,130 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $434,324 | 0.32% | F |
| 3BR | $1,690 | $593,383 | 0.28% | F |
| 4BR | $1,880 | $934,468 | 0.2% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 27842, located in Henrico, NC, and Northampton County, involve understanding the interplay 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 $1,450. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this specific ZIP code. However, the local market rent, based on Census ACS data, is significantly lower at $788.
A landlord participating in the Section 8 program receives reimbursement from the government for a portion of the rent. The total reimbursement is calculated as follows:
To illustrate, if a tenant's monthly income is $1,000, they would contribute $300 (30%) toward the rent. Given the SAFMR of $1,450, the government would cover the remaining $1,150. However, since the local market rent is only $788, the government payment would be capped at this amount. Therefore, the actual reimbursement a landlord receives for a two-bedroom unit would be $788, which includes both the rent and any applicable utility allowances.
The typical reimbursement gap or surplus in ZIP 27842 for a two-bedroom unit is a surplus. Landlords often find that the SAFMR exceeds the local market rent, leading to a situation where the voucher payment is higher than what the market dictates. In this case, the surplus is $788 (market rent) - $300 (tenant's contribution) = $488. This means landlords receive an additional $488 per month beyond the tenant's share, making participation in the Section 8 program financially beneficial compared to the local rental market rates.
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.