Location: Rocky Mount, NC | Metro: Rocky Mount, NC MSA
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 | $940 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,520 | $149,701 | 1.02% | B |
U.S. Census Bureau data (2024)
The ZIP code 27864 represents a neighborhood characterized by a modest population size of 4,446 residents, where nearly one-third (34.6%) are renters. The median household income in this area stands at $64,201, indicating a middle-class community. Median home values in ZIP 27864 are set at $146,568, suggesting an affordable housing market that is accessible to a broad range of buyers.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 27864 for fiscal year 2024 is pegged at $910. This figure closely aligns with the reported market rent of $908, according to the Census Bureau's American Community Survey (ACS). This near parity between FMR and market rent underscores the viability of Section 8 investments in this area, as it ensures that landlords receive rental amounts reflective of the local market conditions.
The question remains whether ZIP 27864 is suitable for hands-off voucher operators or if it requires a hands-on approach for value-add buyers. Given the slight increase in FMR over the market rent, hands-off operators can find security in steady, government-backed rental income. However, the opportunity for value-add strategies is also present. With a median income slightly above the median home value, there is potential for property enhancements that could command higher rents, thereby attracting tenants who might prefer to pay market rates over voucher-restricted rents.
To conclude, ZIP 27864 offers a balanced environment for both types of investors. For those seeking stability and a passive income stream, the alignment of FMR and market rent provides a reliable framework. Conversely, for investors willing to engage actively in property management and improvement, the area presents a chance to capture a segment of the market that is not strictly bound by voucher limitations.
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.