Location: Beaufort County, NC | Metro: Beaufort County, NC
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 27865 presents a unique challenge due to the lack of specific data points, particularly the median home value and days on market (DOM). However, we can still provide a broad overview based on the available information.
The Fair Market Rent (FMR) for a two-bedroom property in ZIP 27865 for fiscal year 2026 is set at $1,390 per month. This translates into an annualized income of $16,680. In contrast, the market rent for a similar property, according to the Census ACS, stands at $1,559 per month, equating to an annualized income of $18,708.
To derive the implied gross yield, we need the median home value. Unfortunately, the data for ZIP 27865 indicates that the median home value is not available. Without this figure, it's impossible to calculate the precise gross yield for either scenario. However, we can still discuss the implications of these rental figures.
The renter density in ZIP 27865 is 7.9%, which is quite low. This suggests that there might be limited demand for rental properties, including those participating in the Section 8 program. Given this low density, it's important to consider the potential challenges in finding and retaining tenants, especially those who qualify for Section 8 assistance.
The FMR of $1,390 per month is significantly lower than the market rent of $1,559. If we were to assume a median home value and calculate the gross yield, the FMR would likely result in a lower yield compared to the market rent. For instance, if the median home value were hypothetically $200,000, the FMR would imply a gross yield of approximately 8.34%, while the market rent would imply a gross yield of about 9.35%. These figures are illustrative only, as the actual median home value is not provided.
Given the low renter density and the absence of days on market data, the market rent scenario appears more realistic. Landlords and small-portfolio investors should expect that the higher market rent reflects the true economic conditions of the area, even though it may limit the pool of eligible tenants for Section 8 vouchers. The FMR, while legally binding for Section 8 participation, may not reflect the actual rental market dynamics, leading to potential vacancies or difficulty in finding tenants willing to pay the market rate.
In conclusion, while the exact gross yield cannot be determined without the median home value, the market rent of $1,559 per month offers a more practical outlook for investment decisions in ZIP 27865. It aligns better with the current rental environment and tenant preferences, despite the challenges posed by the low renter density.
Data Sources: FMR data from HUD (2027). 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.