Section 8 Fair Market Rent (FMR) for ZIP 28025 - 2027

Investment Score for ZIP 28025

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	$1,340
1 Bedroom	$1,400
2 Bedrooms	$1,520
3 Bedrooms	$1,860
4 Bedrooms	$2,360
5 Bedrooms	$2,738
6 Bedrooms	$3,067
7 Bedrooms	$3,312
8 Bedrooms	$3,478

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
1BR	$1,400	$156,768	0.89%	C
2BR	$1,520	$215,995	0.7%	D
3BR	$1,860	$324,323	0.57%	F
4BR	$2,360	$441,335	0.53%	F
5BR	$2,738	$541,207	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28025 (Concord, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 28025 in Concord, NC, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1,440 per month. However, the Zillow median price for a two-bedroom home in this area is $215,997, which translates to a monthly mortgage payment of approximately $1,079 based on a 4.5% interest rate over a 30-year term. This means that the price-to-FMR ratio for a two-bedroom unit is about 12.5 times the rent, indicating that the rental market is significantly higher than the mortgage market. Given that the FMR is $1,440 for a two-bedroom unit, but the average rent could be much higher due to market conditions, voucher holders face significant constraints. They can only afford units that do not exceed the FMR, which may limit their housing options in a market where rents are substantially higher. #### Affordability & Renter Profile In ZIP code 28025, 30.9% of the population are renters, which suggests a substantial demand for rental properties. The occupancy rate stands at 88.1%, indicating that the rental market is relatively tight. With a median household income of $79,545, the two-bedroom FMR represents 21.7% of the median income. This percentage is relatively low, suggesting that the majority of residents can afford the FMR, but it also implies that there might be a segment of lower-income residents who struggle with housing costs. The rental market appears to be competitive, given the high price-to-FMR ratio. This indicates that landlords have pricing power and can charge above the FMR without losing tenants, especially if they offer desirable amenities or are located in prime areas. #### Investor Angle From an investor perspective, the ZIP code 28025 offers mixed opportunities. The FMR for a two-bedroom unit is $1,440, while the average rent could be significantly higher. Assuming a conservative estimate of 10% vacancy rate and considering property management fees, maintenance costs, and other expenses, an investor would need to ensure that the net operating income (NOI) exceeds the mortgage payment and other carrying costs. If we consider a typical rental property management cost of 10% of gross rent, the effective rent collected would be around $1,296 per month for a two-bedroom unit. Given that the mortgage payment is estimated at $1,079, the NOI would be approximately $217 per month, assuming no other significant expenses. This scenario would be cash-flow positive, but the margin is slim. The investment grade for this ZIP code is moderate. While there is a strong demand for rental properties, the high price-to-FMR ratio suggests that the market is not entirely aligned with the FMR, which could pose challenges for investors relying solely on Section 8 vouchers. Additionally, the competition in the rental market may necessitate offering amenities or services that go beyond basic housing needs to attract tenants. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should focus on acquiring properties that are priced below the FMR to ensure they can attract Section 8 voucher holders. For instance, a two-bedroom unit priced at $1,440 or less would be more likely to be rented by voucher holders. 2. **Consider Multi-Family Properties**: Given the high price-to-FMR ratio, multi-family properties may offer better returns. A four-bedroom unit with an FMR of $2,250 could potentially house multiple families or individuals, thereby increasing the overall revenue potential. 3. **Enhance Property Value**: To compete in a tight rental market, investors should consider enhancing the value of their properties through renovations or upgrades. This could include adding energy-efficient appliances, modernizing bathrooms and kitchens, or improving landscaping. These improvements can justify higher rents and make properties more attractive to both voucher holders and non-voucher tenants. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 28025 is to **Hold**. While the market presents some opportunities, the high price-to-FMR ratio and the tight rental market suggest that it is challenging to find properties that are exclusively affordable to voucher holders. Investors should carefully evaluate each property’s potential to generate sufficient cash flow and consider strategies to enhance the property’s appeal to a broader tenant base. ### Summary ZIP code 28025 in Concord, NC, has a robust rental market with a significant portion of the population being renters. The FMR for a two-bedroom unit is $1,440, which is considerably lower than the average market rent. This discrepancy poses challenges for Section 8 voucher holders, who must navigate a competitive rental environment. From an investment standpoint, the ZIP code offers moderate opportunities, but investors should focus on units priced below the FMR and consider enhancements to improve cash flow and tenant attraction. Overall, the recommendation is to hold investments in this area until more favorable conditions emerge.

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.