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 | $1,190 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,920 | $467,668 | 0.41% | F |
| 4BR | $2,000 | $625,579 | 0.32% | F |
| 5BR | $2,320 | $1,004,952 | 0.23% | F |
U.S. Census Bureau data (2024)
In ZIP code 27972, the Section 8 cap rate scenario can be analyzed using the provided data points. The annualized Fair Market Rent (FMR) for a two-bedroom apartment is set at $1,430 for fiscal year 2026. Given the median home value of $652,243, the implied gross yield for a Section 8 property under this FMR would be approximately 2.73%. This calculation assumes that the rental income from a two-bedroom unit is representative of the entire property's income potential, which is a simplification often used in such analyses.
The market rent figure is not available, which complicates a direct comparison. However, if we were to consider a hypothetical market rent that exceeds the FMR, the gross yield would naturally increase. For example, if the market rent were $1,600 per month, the implied gross yield would be around 3.06%, still relatively low compared to traditional investment properties but higher than the Section 8 scenario.
The 30.6% renter density suggests a moderate demand for rental housing in the area. While this doesn't directly influence the gross yield calculation, it does impact the likelihood of finding tenants willing to pay market rates versus those who are eligible for Section 8. A lower Days on Market (DOM) would indicate quicker tenant turnover, which is not specified here, making it difficult to assess the speed at which units might be filled at either rate.
In conclusion, the Section 8 scenario offers a stable but lower gross yield of 2.73% based on the FMR. In contrast, a higher market rent would imply a better gross yield of 3.06%, assuming the market rent is indeed $1,600 per month. Given the limited data on market rents and the unspecified DOM, the Section 8 option provides a more predictable income stream, albeit at a lower gross yield. Landlords and small-portfolio investors should weigh these factors carefully when deciding between Section 8 and market-rate rentals in ZIP code 27972.
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.