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 | $1,510 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,780 |
| 5 Bedrooms | $3,225 |
| 6 Bedrooms | $3,612 |
| 7 Bedrooms | $3,901 |
| 8 Bedrooms | $4,096 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,350 | $228,120 | 1.03% | B |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 27938 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment is set at $1060 per month for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, ensuring it reflects the local rental market conditions accurately.
In contrast, the local market rent for a two-bedroom unit, according to the Census ACS, averages $984 per month. This indicates that the SAFMR is slightly higher than the actual market rent, which can be beneficial for landlords who are participating in the program.
A landlord should understand that the total amount paid by the Section 8 voucher is composed of two parts: the tenant's contribution and the government subsidy. The tenant typically pays 30% of their adjusted income toward rent. For example, if a tenant's monthly adjusted income is $1500, they would pay $450 towards rent. The remainder, up to the SAFMR, is subsidized by the government. In this case, the government would pay $610 ($1060 - $450).
Additionally, there are utility allowances to consider. These allowances vary but are usually around $200-$300 per month for a two-bedroom unit. Thus, if we assume an average utility allowance of $250, the total reimbursement to the landlord would be $860 ($610 + $250).
This means that in ZIP 27938, where the market rent is $984, a landlord might experience a slight surplus when renting to a Section 8 tenant. The difference between the market rent and the voucher reimbursement is $124 ($984 - $860). Therefore, the landlord receives $124 more per month than the voucher alone covers, making participation in the Section 8 program financially viable and potentially profitable.
To summarize, the SAFMR for a two-bedroom unit in ZIP 27938 is $1060, while the local market rent is $984. With a typical tenant contribution of $450 and an additional utility allowance of $250, the landlord receives a total of $860 from the voucher program. This results in a $124 surplus over the market rent, providing landlords with a clear economic incentive to participate in the Section 8 program.
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.