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 | $1,410 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,640 | $320,862 | 0.51% | F |
| 2BR | $1,780 | $394,439 | 0.45% | F |
| 3BR | $2,260 | $507,942 | 0.44% | F |
| 4BR | $2,360 | $650,991 | 0.36% | F |
| 5BR | $2,738 | $1,104,324 | 0.25% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 27948 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,590, while the Census ACS reports a market rent of $1,673. This results in a $83 difference, which translates to a 5.5% gap between the two figures.
Given that the FMR is less than the market rent, landlords and small-portfolio investors should be aware of the potential costs associated with housing voucher tenants. When accepting Section 8 vouchers, landlords agree to rent their properties below the open-market rate, which can reduce their overall revenue per unit. In the case of 27948, the reduction is $83 per month, or 5.5% of the market rent. This discrepancy can impact the cash flow and profitability of rental properties in the area.
To anchor this analysis in the local context of North Carolina, it's important to consider the broader economic landscape. In 27948, 25.8% of residents are renters, indicating a substantial portion of the population relies on rental housing. The median home value in the area is $521,580, suggesting a relatively stable housing market. However, the median income of $86,193 highlights the financial constraints many households face, making affordable housing options like Section 8 vouchers crucial for maintaining housing stability.
Landlords should weigh the benefits of guaranteed rental payments against the lower rates offered by the Section 8 program. While the program ensures timely payments, it also means accepting a slightly lower rent compared to what could be charged in the open market. This trade-off is particularly relevant in an environment where nearly a quarter of the population depends on rental housing.
In summary, the gap between FMR and market rent in 27948 presents a clear challenge for landlords considering participation in the Section 8 program. Accepting voucher tenants means renting below the market rate, which can affect yields and overall investment returns. Investors must decide whether the stability of guaranteed payments outweighs the cost of reduced rental income.
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.