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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $56,101 | 1.8% | A+ |
| 3BR | $1,210 | $112,755 | 1.07% | B |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 27845 revolves around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, as set by HUD for metro fiscal year 2026, is $930. In contrast, the Census ACS data indicates that the average market rent stands at $819. This results in a gap of $111, or approximately 13%, between the two figures.
Given that the FMR exceeds the market rent, properties in ZIP 27845 present an attractive opportunity for landlords and small-portfolio investors looking to maximize yields. Voucher tenants, who pay a portion of their income towards rent and have the remainder subsidized by the government, can offer a stable and predictable source of income. In North Carolina, where 24.0% of residents are renters, and the median home value is $107,163, the potential for rental income growth is significant. With a median income of $48,707, many renters qualify for housing vouchers, ensuring a steady stream of tenants willing to pay the higher FMR rate.
The higher FMR rate means that landlords can charge closer to $930 per month for their units, even if the open-market rate is lower. This makes voucher tenants particularly valuable in areas where market rents are depressed but the FMR remains high. It allows property owners to potentially earn more than they would from typical market-rate tenants, thus turning what might otherwise be a low-yield investment into a profitable venture.
However, it's important to note that accepting Section 8 tenants also comes with certain responsibilities and regulations that must be adhered to. Despite these considerations, the financial benefits of renting to voucher holders in ZIP 27845 are compelling, given the favorable gap between FMR and market rent.
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.