Location: Martin County, NC | Metro: Halifax 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 | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $33,764 | 2.99% | A+ |
| 3BR | $1,380 | $93,727 | 1.47% | A |
| 4BR | $1,580 | $159,386 | 0.99% | C |
U.S. Census Bureau data (2024)
Investors looking into ZIP 27874, located in Scotland Neck, NC, might question whether the Fair Market Rent (FMR) of $930 for the metro area in fiscal year 2026 will sufficiently cover the mortgage on a home priced at $86,071. The FMR is designed to reflect the average rent for a standard unit, which means that it should generally align with the costs associated with owning a property. However, the actual mortgage payment will depend on factors such as interest rates and down payments. Given the median home price and typical mortgage terms, an FMR of $930 is likely to be adequate for covering the mortgage, but this needs to be calculated based on individual circumstances.
A second concern could be the level of renter demand, indicated by the rental occupancy rate of 39.5%. This percentage suggests that less than half of the housing units in the area are rented, which might seem low. However, the rental demand in ZIP 27874 is still significant, as it represents a substantial portion of the total housing stock. Additionally, the rental vacancy rate can fluctuate due to seasonal changes and local economic conditions. Investors should consider these dynamics and the potential for steady rental income despite the lower occupancy rate.
The third objection centers around whether Housing Choice Vouchers will keep up with the market rents of $568. The voucher program aims to provide affordable housing options for low-income families, but the amount paid by vouchers can vary widely depending on local market conditions and administrative decisions. While the data does not specify the exact voucher amounts for ZIP 27874, historically, voucher programs adjust their payments to stay competitive with market rates. Therefore, it is reasonable to expect that vouchers will remain in line with the $568 market rents, ensuring that tenants can afford to live in the area without financial strain.
In summary, while the data presents some challenges for investors in ZIP 27874, it also highlights opportunities. The FMR should cover mortgage expenses under typical conditions, the rental demand is sufficient for steady income, and vouchers are likely to support market rents. These points should be carefully weighed against other investment criteria before making any decisions.
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.