Location: Tyrrell County, NC | Metro: Tyrrell County, NC
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
To decide whether to invest in ZIP code 27925 (Columbia, NC) for Section 8 properties, follow these steps:
1) Does the Fair Market Rent (FMR) of $930 per month cover the debt service on a property valued at $168,042?
Yes: The FMR of $930 is sufficient to clear the debt service on a $168,042 property. This means that the rental income from a Section 8 tenant can meet the mortgage payments and other financial obligations associated with the property.
No: If the FMR does not cover the debt service, then purchasing a property in this ZIP code for Section 8 purposes would not be financially viable. However, given the FMR of $930, it is likely to cover the debt service on a property of that value.
2) Is the market rent of $644 per month above, at, or below the FMR?
Above: If the market rent were above the FMR, it would indicate that there is additional demand for housing beyond what is supported by Section 8 subsidies. However, in ZIP 27925, the market rent is below the FMR at $644 per month.
At: If the market rent equaled the FMR, it would suggest that the subsidy amount aligns well with the local rental market. In this case, it does not apply since the market rent is lower.
Below: With the market rent at $644, which is below the FMR of $930, landlords can potentially earn more by participating in the Section 8 program. This also suggests that the subsidy is higher than the typical market rate, making it attractive for those seeking stable income.
3) Are 22.6% of residents renters, and is the number of days on the market (DOM) sufficient to meet demand?
Yes: The 22.6% of residents who are renters indicates a moderate level of rental demand in the area. However, the lack of data on days on the market (DOM) makes it difficult to assess the speed at which rental properties are leased. Assuming that the demand is met, the answer would be yes.
No: If the rental demand is not high enough or if properties take too long to lease, then investing in this ZIP code might not be ideal. Given the limited information on DOM, this scenario cannot be definitively ruled out without further investigation.
It Depends: The 22.6% rental rate alone does not provide a complete picture of the market's health. The missing DOM data leaves room for uncertainty about how quickly properties can be leased. Therefore, the viability of buying in this ZIP code for Section 8 purposes depends on additional factors such as the competition in the rental market and the overall economic conditions of the area.
In summary, if the FMR covers the debt service and you are willing to accept the moderate rental demand indicated by the 22.6% rate, ZIP 27925 could be a good investment for Section 8 properties due to the higher subsidy compared to the market rent.
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.