Location: Rutherford County, NC | Metro: Cleveland 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 | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $142,993 | 0.71% | D |
| 3BR | $1,350 | $225,684 | 0.6% | F |
| 4BR | $1,370 | $307,673 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 28040, located in Ellenboro, North Carolina, stands out within Rutherford County due to its unique demographic and economic characteristics. With a population of 6,961, this area has a relatively low rental rate of 14.9%, indicating that most residents own their homes. The median income here is $58,816, which is slightly above the national average, suggesting a middle-class community. The median home value in ZIP 28040 is $192,463, reflecting a modest housing market where property values are accessible but not excessively high.
Moving to the specifics of Section 8 voucher economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $930, while the actual market rent, according to Census ACS data, is $750. This discrepancy indicates that landlords accepting Section 8 vouchers could potentially benefit from a higher rental income compared to the local market rates. However, it also implies that there might be competition from landlords who can offer lower rents, attracting tenants without vouchers.
Based on the data signature, ZIP 28040 appears to be in a stable phase. The modest median income and home values suggest a steady, middle-class community. While the rental rate is low, the presence of Section 8 vouchers provides an opportunity for landlords to tap into federal assistance programs, ensuring a consistent tenant pool. This stability is further reinforced by the relatively low volatility in median income and home values, indicating that the area is unlikely to experience rapid changes in the near future.
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.