Location: Northampton County, NC | Metro: Hertford 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 | $800 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,560 | $135,400 | 1.15% | B |
U.S. Census Bureau data (2024)
In evaluating whether to purchase properties in ZIP code 27855 for Section 8 investment, follow this decision tree based on the provided data.
1. Does FMR ($990) clear debt service on a $130,625 property?
If the annual debt service on a $130,625 property is less than or equal to $11,880 (12 * $990), then yes, the FMR clears the debt service. This means that the income from Section 8 tenants would cover your mortgage payments and other financing costs.
If the annual debt service exceeds $11,880, then no. The FMR would not be sufficient to cover the debt service, making it financially unfeasible to rely solely on Section 8 tenants.
2. Is market rent ($1,014) above, at, or below FMR?
If market rent is above the FMR, then it depends. The higher market rent indicates potential for non-Section 8 tenants, but you must assess if the number of Section 8 vouchers available can sustain the desired level of occupancy.
If market rent is at or below the FMR, then yes. The market conditions align with the FMR, making it easier to find Section 8 tenants willing to pay the set rate without leaving significant rent gaps.
3. Are 36.3% renters + N/A-day days on market (DOM) enough demand?
If the percentage of renters (36.3%) and the lack of specific DOM data indicate sufficient demand, then yes. With over one-third of the population renting, there is a reasonable pool of potential tenants, including those eligible for Section 8 housing assistance.
If the percentage of renters is deemed insufficient despite the high market rent, then no. A lower rental demand might mean fewer Section 8 tenants available, risking vacancy rates and financial stability.
If the percentage of renters is adequate but DOM data suggests long periods before properties are rented, then it depends. Long DOM periods could indicate difficulty in finding tenants, which would need to be balanced against the higher market rent and the presence of Section 8 vouchers.
To summarize, purchasing in ZIP 27855 for Section 8 investment hinges on these factors: ensuring the FMR covers debt service, comparing market rent to FMR, and assessing the rental demand relative to the availability of Section 8 vouchers. Each step guides the final decision on feasibility and profitability.
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.