Location: Charlotte-Concord-Gastonia, NC | Metro: Charlotte-Concord-Gastonia, NC-SC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,190 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
The economics of Section 8 housing in ZIP code 28053, which is part of the Charlotte-Concord-Gastonia County area in North Carolina, operate under specific financial guidelines that landlords need to understand. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1200. This figure is crucial because it represents the maximum amount that the Housing Choice Voucher program will pay towards the rent of a two-bedroom unit in this specific area.
While the local market rent for the area is currently unavailable, the SAFMR serves as a benchmark for determining the rental subsidy. It's important to note that the SAFMR is tailored specifically for this ZIP code, meaning it reflects the rental market conditions here more accurately than broader county or metropolitan averages might.
A landlord participating in the Section 8 program receives a subsidy from the government to cover the majority of the rent. However, the total payment includes both the voucher reimbursement and the tenant's portion of the rent. Typically, the tenant is responsible for paying 30% of their adjusted income towards the rent. If we assume an average adjusted income for a tenant, they would contribute approximately $360 towards a $1200 monthly rent, based on the SAFMR. This leaves the remaining $840 to be covered by the voucher program.
In addition to the base rent, the Section 8 program also provides utility allowances. These allowances vary but are designed to help cover the cost of utilities such as electricity, water, and gas. For a two-bedroom apartment, the utility allowance can range from $200 to $300 per month, depending on the specific circumstances and the type of utilities used. Therefore, the total amount a landlord might receive could be between $1040 and $1140 when including the utility allowance.
This means there is a potential reimbursement gap or surplus. In ZIP 28053, if the market rent were higher than the SAFMR, landlords would face a shortfall. Conversely, if the market rent is lower than $1200, landlords would see a surplus. Given the SAFMR of $1200 and assuming the tenant contributes $360, the typical reimbursement gap or surplus for a two-bedroom apartment would be around $360. This surplus indicates that landlords could potentially earn more from Section 8 tenants than from the average market rent, assuming the market rent is indeed below the SAFMR.
Data Sources: FMR data from HUD (2027).
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.