Location: Charlotte-Concord-Gastonia, NC | Metro: Charlotte-Concord-Gastonia, NC-SC HUD Metro FMR Area
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 | $1,760 |
| 1 Bedroom | $1,840 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,440 |
| 4 Bedrooms | $3,110 |
| 5 Bedrooms | $3,608 |
| 6 Bedrooms | $4,041 |
| 7 Bedrooms | $4,364 |
| 8 Bedrooms | $4,582 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,000 | $317,786 | 0.63% | D |
| 3BR | $2,440 | $488,661 | 0.5% | F |
| 4BR | $3,110 | $799,638 | 0.39% | F |
| 5BR | $3,608 | $1,781,463 | 0.2% | F |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 28031, which encompasses Cornelius, NC, reveals a notable discrepancy between the Fair Market Rent (FMR) and the actual market rent, known as the Zillow Observed Rent Index (ZORI). For fiscal year 2024, the FMR is set at $1750, whereas the ZORI stands at $1725. This indicates that the FMR is $25 higher than the market rent, representing an increase of approximately 1.45%. The gap between these figures suggests that landlords and small-portfolio investors can leverage this situation to their advantage.
In Cornelius, where 28.4% of residents are renters and the median home value is $544,177, the higher FMR means that voucher tenants can potentially cover a larger portion of the rental costs compared to what the market would bear. With a median household income of $113,368, many residents may find it challenging to afford homes at the median value, making rental properties a significant part of the housing landscape.
The fact that the FMR exceeds the market rent makes this area a prime candidate for a yield play. Landlords who accept Section 8 vouchers can expect to receive a rate that is slightly above the current market conditions. This can help mitigate the risks associated with lower vacancy rates and provide a steady, government-backed income stream. Additionally, the higher FMR can offset some of the administrative costs and potential delays in receiving rent payments that are sometimes associated with voucher programs.
However, it's important to note that accepting Section 8 tenants does come with its own set of challenges. These include the need to adhere to HUD regulations, which can affect how properties are maintained and renovated. Despite these considerations, the gap between the FMR and ZORI in Cornelius, NC, presents an opportunity for landlords to secure rental income that is slightly above the prevailing market rates, thereby enhancing their investment yield.
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.