Section 8 Fair Market Rent (FMR) for ZIP 28021 - 2027

Location: Cleveland County, NC | Metro: Charlotte-Concord-Gastonia, NC-SC HUD Metro FMR Area

Investment Score for ZIP 28021

Monthly Rent (2BR)

$1,120

Median Price (2BR)

$162,617

1% Rule

0.69%

Annual Yield

8.26%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$980
1 Bedroom	$1,020
2 Bedrooms	$1,120
3 Bedrooms	$1,430
4 Bedrooms	$1,730
5 Bedrooms	$2,007
6 Bedrooms	$2,248
7 Bedrooms	$2,428
8 Bedrooms	$2,549

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,120	$162,617	0.69%	D
3BR	$1,430	$272,514	0.52%	F
4BR	$1,730	$384,070	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

13,865

Median Household Income

$63,429

Housing Units

6,293

Renter Percentage

25.9%

Occupancy Rate

88.5%

Renter Occupied

1,443

To determine if you should buy in ZIP 28021 (Cherryville, NC) for Section 8, follow this decision tree:

Does FMR $1020 (zip FY 2024) clear debt service on a $248,332 property?
- Yes: If the Fair Market Rent (FMR) of $1020 is sufficient to cover your debt service, then this area is financially viable for Section 8 properties.
- No: If the FMR does not cover the debt service, buying in this area would not be advisable unless you can secure additional income sources.
Is market rent $1,010 (Census ACS) above, at, or below FMR?
- Above: If the market rent exceeds the FMR, there is potential for higher returns outside of Section 8, making this location attractive for both types of tenants.
- At: If the market rent matches the FMR, you can expect steady but not exceptional returns, typical for a Section 8 investment.
- Below: If the market rent is lower than the FMR, Section 8 might provide better stability and returns compared to market-rate rentals.
Are 25.9% renters + N/A-day DOM enough demand?
- It Depends: With 25.9% of the population being renters, there is moderate demand. However, the lack of data on days on market (DOM) makes it challenging to assess how quickly properties are rented. Consider local real estate trends and consult with local agents for a clearer picture.

The Fair Market Rent of $1020 for ZIP 28021 must be analyzed against the cost of owning a property valued at $248,332. If this amount consistently covers your mortgage payments and other expenses, the answer is yes. Otherwise, it is no.

The market rent of $1,010, according to Census ACS data, is nearly equal to the FMR. This suggests that market-rate rentals are competitive with Section 8 rates, which could influence your decision based on your preference for tenant type and expected returns.

With 25.9% of the population renting, there is a notable rental market. However, the absence of DOM data means you cannot fully gauge the speed at which units are filled. This uncertainty requires further investigation into local rental dynamics before making a final 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.