Location: Rowan County, 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 | $1,800 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,510 |
| 4 Bedrooms | $3,190 |
| 5 Bedrooms | $3,700 |
| 6 Bedrooms | $4,144 |
| 7 Bedrooms | $4,476 |
| 8 Bedrooms | $4,700 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,040 | $383,058 | 0.53% | F |
| 3BR | $2,510 | $554,223 | 0.45% | F |
| 4BR | $3,190 | $861,652 | 0.37% | F |
| 5BR | $3,700 | $1,005,081 | 0.37% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 28036, which includes Davidson, NC, and parts of Mecklenburg and Rowan Counties, is set at $1700 for fiscal year 2024. This figure represents the maximum amount that a landlord can charge a tenant with a Section 8 voucher. In comparison, the market rent, as indicated by the Zillow Observed Rental Index (ZORI), stands at $2,068. Given these numbers, voucher tenants would typically result in marginal cash flow for landlords, unless they focus exclusively on premium units where the market rent is closer to the FMR.
To derive the rent-to-price ratio, we can use the median home value in the area, which is $655,803. Dividing the market rent of $2,068 by the median home value yields a monthly rent-to-price ratio of approximately 0.315%. This ratio suggests that rental income alone does not significantly offset the high property values in the region, making it less attractive purely from a cash flow perspective.
The dynamics between renting and buying in this market do not heavily influence decisions due to the lack of relevant data on days on market (DOM) and price-cut shares. However, given the high median home value and relatively lower market rents compared to the FMR, the primary investment angle for Section 8 landlords should be stability. The consistent government-backed rental income provides a reliable source of cash flow, despite the margins being tight. Stability is the strongest investor angle in ZIP 28036, ensuring predictable returns over time.
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.