Location: Rocky Mount, NC | Metro: Greenville, 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 | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $86,102 | 1.21% | A |
| 3BR | $1,400 | $157,612 | 0.89% | C |
| 4BR | $1,660 | $230,691 | 0.72% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 27886, Tarboro, NC, within Edgecombe County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $930. This is the maximum amount that the Housing Choice Voucher program will pay towards the rent of a two-bedroom unit in this area. In comparison, the local market rent, measured by ZORI (Zillow Observed Rent Index), is slightly higher at $965.
A landlord participating in the Section 8 program receives payment from the voucher holder's local housing authority. This payment covers the difference between the tenant’s portion of the rent and the SAFMR. For a two-bedroom apartment, the tenant typically pays 30% of their adjusted income towards rent. If the tenant's adjusted income is $1,000 per month, they would contribute $300 towards the rent. The housing authority then pays the remaining balance up to the SAFMR limit.
In addition to the base rent, there are utility allowances. These allowances vary based on the size of the unit and the location. For ZIP 27886, the utility allowance for a two-bedroom apartment is around $300. This allowance is also paid by the housing authority and is intended to cover the cost of utilities such as electricity, gas, water, and sewer.
To illustrate, if a landlord charges the market rent of $965 for a two-bedroom apartment, and the tenant contributes $300 (30% of their adjusted income), the housing authority would pay the remaining $665 plus the utility allowance of $300. However, since the SAFMR is only $930, the total reimbursement from the housing authority would be capped at this amount. Therefore, the landlord would receive $930 ($665 for rent + $300 for utilities).
This leaves a reimbursement gap of $35 ($965 - $930) for the landlord. It's important to note that this gap is relatively small compared to the potential benefits of stable tenancy and government-backed payments. Landlords should also consider that the SAFMR is designed to reflect the average market conditions, meaning that some units may command a higher rent due to superior amenities or condition, while others might be priced lower.
In summary, for a two-bedroom apartment in ZIP code 27886, landlords can expect a reimbursement of up to $930, which includes both the rent and utility allowances. Given the local market rent of $965, landlords will face a slight reimbursement gap of $35. This gap must be weighed against the advantages of having a tenant whose rent is guaranteed by the government, ensuring financial stability and reducing vacancy risks.
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.