Section 8 Fair Market Rent (FMR) for ZIP 27858 - 2027

Investment Score for ZIP 27858

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,010
1 Bedroom	$1,020
2 Bedrooms	$1,230
3 Bedrooms	$1,600
4 Bedrooms	$2,010
5 Bedrooms	$2,332
6 Bedrooms	$2,612
7 Bedrooms	$2,821
8 Bedrooms	$2,962

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,230	$158,715	0.77%	D
3BR	$1,600	$260,606	0.61%	D
4BR	$2,010	$407,991	0.49%	F
5BR	$2,332	$523,186	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27858 (Greenville, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27858 in Greenville, North Carolina, is set by HUD for the year 2026. The FMRs are as follows: - 0BR: $960 - 1BR: $970 - 2BR: $1180 - 3BR: $1580 - 4BR: $1980 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, it is important to understand how these figures compare to actual rental prices in the area. For instance, the 2BR FMR of $1180 is only 23.7% of the median household income of $59,713, indicating that it is significantly lower than what might be considered affordable based on local incomes. Given the high renter percentage of 57.1%, many residents are likely to rely on rental assistance programs such as Section 8. This means that landlords who accept Section 8 vouchers will have a steady stream of tenants but must adhere to the rent limits imposed by HUD. For example, a landlord with a 2BR unit priced at $1180 would be within the FMR guidelines but would need to ensure that the tenant’s portion of the rent (typically 30% of their income) does not exceed $1180. #### Affordability & Renter Profile ZIP code 27858 has a significant population of renters, with 57.1% of households being renters. This suggests a strong demand for rental properties. The occupancy rate of 90.8% indicates that the market is relatively tight, with few vacant units available. The median household income of $59,713 provides context for the affordability of housing. A 2BR unit priced at $1180 per month represents about 23.7% of the median income, which is within the typical range for affordable housing. However, the Zillow median price for a 2BR home is $158,270, which translates to a monthly mortgage payment of approximately $742 assuming a 30-year fixed-rate mortgage at 4%. This implies that owning a 2BR home is more financially feasible than renting at the FMR level, given the low rent-to-income ratio. The high price-to-FMR ratio of 11.2x for 2BR units suggests that the rental market is significantly more expensive relative to the purchase market. This could indicate that rental prices are inflated compared to the FMR, potentially creating challenges for voucher holders who must find units within the FMR limits. #### Investor Angle From an investor perspective, accepting Section 8 vouchers can provide a stable source of income, but it comes with constraints. The FMRs are set below the average rental prices, meaning that landlords who accept vouchers will receive less rent than they might otherwise. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with rental properties. Assuming a 2BR unit with a monthly rent of $1180, and typical operating costs of around 50% of gross rent (including maintenance, property management, utilities, and taxes), the net income would be approximately $590 per month. However, the high price-to-FMR ratio of 11.2x suggests that the purchase price of rental properties is much higher than the FMR. This means that the initial investment required to buy a property is substantial, and the return on investment (ROI) would be lower when considering the FMR-based rental income. The investment grade for this ZIP code would be moderate to low, primarily due to the high purchase prices relative to the rental income. Investors should carefully evaluate the potential for long-term appreciation and the stability of the local economy before making any investments. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units like 0BR and 1BR might offer better cash flow opportunities. For instance, a 1BR unit at $970 per month would yield a net income of approximately $485 per month after accounting for 50% operating costs. This is still lower than the FMR for larger units but may be more manageable for investors. 2. **Consider Long-Term Appreciation**: While the ROI might be lower, the median home price of $158,270 for a 2BR unit suggests that there is potential for long-term appreciation. Investors should consider the growth prospects of the area and the likelihood of increasing property values over time. 3. **Evaluate Local Economic Stability**: With a median household income of $59,713, it is crucial to assess the economic stability of the area. High renter percentages and tight occupancy rates suggest a robust demand for rentals, but investors should also look into unemployment rates, job growth, and other economic indicators to ensure that the local economy can sustain rental prices and support tenant stability. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 27858 is to **Hold**. The high price-to-FMR ratio makes it challenging to achieve positive cash flow, especially for larger units. However, the strong demand for rentals and the potential for long-term appreciation make holding onto properties a viable strategy. Investors should focus on smaller units and conduct thorough due diligence on the local economic conditions before committing to new investments.

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.