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 | $1,300 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,520 | $213,002 | 0.71% | D |
| 2BR | $1,660 | $404,056 | 0.41% | F |
| 3BR | $2,110 | $501,512 | 0.42% | F |
| 4BR | $2,200 | $648,490 | 0.34% | F |
| 5BR | $2,552 | $1,347,875 | 0.19% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 27943, located in Hatteras, NC, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $1,840. However, the current market rent data is not available, which makes it challenging to provide an exact percentage difference. This lack of market rent data suggests that landlords might face challenges in setting competitive rents while adhering to the FMR guidelines.
In Hatteras, where the median home value stands at $526,922 and the median household income is $57,188, the rental market is virtually non-existent with only 0.0% of residents identified as renters. This indicates that the majority of the population owns their homes, creating a unique environment for rental properties. In such a scenario, the FMR of $1,840 becomes the benchmark for landlords who wish to participate in the Section 8 program.
If the FMR is higher than the market rent, which could be inferred from the non-availability of market rent data, then voucher tenants can potentially offer a yield play for landlords. This means that landlords can receive a stable income stream through the government subsidy, even if the market rent is lower. The guaranteed payment from the voucher program can help cover costs and provide a steady return on investment, making it attractive despite the low overall rental demand.
Conversely, if the FMR is lower than the market rent, landlords would have to accept a rate below what they could potentially charge in the open market. This situation can lead to reduced profitability, especially considering the high median home values and limited rental market presence in Hatteras. Landlords must carefully evaluate the costs associated with maintaining a property under the Section 8 program against the potential loss of revenue from renting above the FMR but below market rates.
To conclude, the decision to participate in the Section 8 program in Hatteras should be based on a thorough understanding of the local real estate dynamics. Landlords need to weigh the benefits of a guaranteed income against the potential drawbacks of renting below market rates. Given the high median home values and low rental market presence, this analysis is crucial for making informed decisions about property investments.
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.