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 | $1,170 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,360 | $326,160 | 0.42% | F |
| 2BR | $1,480 | $380,749 | 0.39% | F |
| 3BR | $1,880 | $490,817 | 0.38% | F |
| 4BR | $1,960 | $722,508 | 0.27% | F |
| 5BR | $2,274 | $1,030,641 | 0.22% | F |
U.S. Census Bureau data (2024)
To decide whether to invest in ZIP code 27954 (Manteo, NC) for Section 8 properties, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,420 cover the debt service on a property valued at $517,244?
No. The annual FMR income of $17,040 ($1,420 x 12 months) would not be sufficient to cover the debt service on a property priced at $517,244. For context, a mortgage on a property of that value would likely require monthly payments well over $1,420, depending on interest rates and loan terms.
2) Is the market rent of $1,243 above, at, or below the FMR?
Below. The market rent of $1,243 is lower than the FMR of $1,420. This suggests that while you might receive higher rents through Section 8 than what the market currently offers, the gap is relatively small. It also implies that there's potential for competition from non-subsidized rentals.
3) Are the 18.2% renters and N/A-day days on the market (DOM) indicative of enough demand?
It depends. With 18.2% of the population being renters, there is some demand for rental housing. However, the lack of data on days on the market (DOM) makes it difficult to assess how quickly properties are rented out. A low DOM could indicate strong demand, but without this figure, the analysis is incomplete.
If the answer to question 1 is "No," then purchasing a $517,244 property in Manteo for Section 8 purposes is not financially viable based on the FMR alone.
If the answer to question 2 is "Below," it indicates that while Section 8 can provide a stable tenant base, the rent premium over market rates is minimal. Landlords should consider the benefits of guaranteed income against the potentially smaller margin.
If the answer to question 3 is "It depends," due to the lack of DOM data, landlords must look into other local market indicators such as vacancy rates and the number of Section 8 vouchers available to gauge actual demand.
In conclusion, investing in ZIP 27954 for Section 8 properties is challenging given the high property values relative to the FMR. While the market rent is below the FMR, indicating some benefit to using Section 8, the limited data on rental demand means further investigation is required before making an investment decision.
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.