Location: Dare County, NC | Metro: Dare 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 | $1,190 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,920 | $456,220 | 0.42% | F |
| 4BR | $2,000 | $566,912 | 0.35% | F |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 27920 in relation to Section 8 housing reveals several potential challenges that landlords must consider before entering this market. First, tenant turnover poses a significant risk. At a market rent of $909, which is notably lower than the Fair Market Rent (FMR) of $1,430 for the metro area in fiscal year 2026, landlords may find themselves dealing with frequent changes in occupancy. This can lead to higher administrative costs and potential delays in rental income.
Vacancy exposure is another concern, though limited data on the number of days on market (DOM) makes it difficult to quantify this risk precisely. Landlords should be prepared for periods where their units remain unoccupied, especially if they are competing with market rents that are significantly below the FMR.
Deferred maintenance also represents a substantial risk, given the typical home value of $458,583 and the lack of available data on median income. The high cost of maintaining homes can be a burden, particularly if tenants are unable to afford the upkeep due to lower incomes. This could result in landlords having to cover additional costs for repairs and maintenance.
However, these risks are somewhat mitigated by the high renter share in the area, which stands at 25.9%. High renter density typically correlates with greater demand for rental properties, including those accepting Section 8 vouchers. This suggests that there is a robust market for subsidized housing in ZIP 27920, which can help ensure steady occupancy rates.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the strong demand for rental properties in ZIP 27920 makes it a moderate risk for a first-time Section 8 landlord. The high renter share provides a buffer against some of the risks, but careful management and an understanding of the local market dynamics will be crucial for success.
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.