Location: Gates County, NC | Metro: Gates County, NC HUD Metro FMR Area
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 | $1,350 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,130 | $248,775 | 0.86% | C |
U.S. Census Bureau data (2024)
The ZIP code 27935 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern due to the disparity between the market rent of $931 and the Fair Market Rent (FMR) of $1050 for FY 2024. This gap can lead to higher turnover rates as tenants seek more affordable housing options. Additionally, the vacancy exposure is considerable, as the Days on Market (DOM) figure is currently unavailable, indicating potential difficulties in quickly filling vacant units. The typical home value in the area stands at $235,893, while the median income is $82,115, which suggests that many homeowners might be struggling financially, leading to deferred maintenance issues and potentially affecting property values.
However, these risks must be weighed against the substantial 27.4% share of renters in the area. High renter density often translates into a robust demand for housing vouchers, which can provide a stable source of rental income. The presence of a large number of voucher holders can mitigate some of the risks associated with tenant turnover and vacancy rates, as voucher recipients typically have a reliable source of funds for rent.
In conclusion, despite the potential for higher tenant turnover and vacancy exposure, the strong demand for housing vouchers makes the risk for a first-time Section 8 landlord in ZIP 27935 moderate.
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.