Location: Hyde County, NC | Metro: Hyde 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 | $910 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,440 | $221,370 | 0.65% | D |
U.S. Census Bureau data (2024)
A skeptical investor analyzing ZIP code 27885 might have several concerns regarding the viability of renting properties under the Section 8 program. Let's address these concerns head-on using the available data.
Objection 1: Will Fair Market Rent (FMR) of $1,080 (for the metro area in fiscal year 2026) be sufficient to cover the mortgage on a $143,860 home?
The FMR of $1,080 can indeed cover the mortgage on a home priced at $143,860, assuming a typical interest rate and loan terms. For example, a 30-year fixed-rate mortgage at an interest rate of 4.5% would result in a monthly payment of approximately $718. This leaves a buffer of $362 per month, which can be used to cover property taxes, insurance, maintenance, and other expenses associated with owning a rental property. However, it's important to note that the actual mortgage amount can vary based on down payment, credit score, and other factors.
Objection 2: Is there enough renter demand at 22.9%?
The 22.9% figure represents the percentage of households that are renters. While this percentage might seem low, it still translates into a significant number of potential tenants. The demand for affordable housing remains strong, and many renters are seeking the stability and support that Section 8 provides. Moreover, the rental market is dynamic, and demand can fluctuate based on local economic conditions, job availability, and population growth. To accurately assess demand, investors should consider conducting a detailed market analysis specific to ZIP 27885.
Objection 3: Will vouchers keep pace with market rents of $1,394?
The FMR of $1,080 is below the current market rent of $1,394, indicating a gap between what voucher holders can pay and what the market demands. However, the Section 8 program is designed to adjust its payments periodically to reflect changes in the market. If the program does not increase the FMR to match rising market rents, landlords may find themselves subsidizing the difference. This could be a financial burden, especially if the landlord has multiple properties. It's crucial for investors to monitor any updates to the FMR and plan accordingly to ensure profitability.
In conclusion, while the data presents a mixed picture for ZIP 27885, it also offers opportunities for careful investors. The FMR is sufficient to cover mortgage costs, but the percentage of renters and the potential for voucher payments to lag behind market rents are areas that require further investigation and strategic planning.
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.