Section 8 Fair Market Rent (FMR) for ZIP 28054 - 2027

Investment Score for ZIP 28054

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	$129,088	1.08%	B
2BR	$1,520	$176,003	0.86%	C
3BR	$1,860	$278,141	0.67%	D
4BR	$2,360	$357,557	0.66%	D
5BR	$2,738	$522,894	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28054 (Gastonia, NC) #### Section 8 Voucher Dynamics The Federal Market Rent (FMR) figures for ZIP code 28054 indicate that the maximum allowable rent for a two-bedroom unit is $1500 per month. However, the actual median rent for a two-bedroom unit based on Zillow data is $174,566, which translates to a monthly rent of approximately $1454.63 when amortized over a year. This suggests that the actual rents are slightly below the FMR threshold, making it feasible for Section 8 voucher holders to find housing within their budget. However, there are constraints for voucher holders. The FMR for a three-bedroom unit is $1850, but the price-to-FMR ratio indicates that the actual cost of such units could be significantly higher. Given the high price-to-FMR ratio of 9.7x, it’s likely that many units exceed the FMR limits, particularly for larger units. This means that voucher holders might struggle to find suitable housing for families with more than two bedrooms, potentially leading to a concentration of voucher usage in smaller units. #### Affordability & Renter Profile ZIP code 28054 has a population of 41,707, with 53.2% of residents being renters. The occupancy rate stands at 93.6%, indicating a relatively tight rental market. With a median household income of $61,035, the affordability of housing is a significant concern. For instance, the FMR for a two-bedroom unit represents 29.5% of the median income, which is a substantial portion of a household’s budget. Given the high percentage of renters and the tight occupancy rate, it’s clear that the demand for rental properties is strong. However, the high price-to-FMR ratio suggests that the market is skewed towards higher-end rentals, which may not be affordable for low-income households. This creates a challenging environment for renters who rely on Section 8 vouchers, as they must navigate a market where many units are priced above the FMR limits. #### Investor Angle From an investor perspective, the ZIP code offers a mixed picture. The actual median rent for a two-bedroom unit is $1454.63, which is slightly below the FMR of $1500. This means that investors can potentially achieve cash flow positive outcomes by renting units at or near the FMR. However, the high price-to-FMR ratio of 9.7x implies that the overall market is expensive, and investors may face challenges in finding properties that meet the FMR criteria. The investment grade for this ZIP code would be considered moderate. While there is a strong demand for rental properties, the high cost of acquiring properties and the potential difficulty in finding units that fit within the FMR guidelines could make it less attractive for some investors. Additionally, the high percentage of renters and tight occupancy rate suggest that there is a risk of competition from other landlords and property owners who may be willing to accept lower rents to fill vacancies. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Investors should focus on acquiring two-bedroom units, as these are most likely to align with the FMR guidelines and have a higher likelihood of being rented by Section 8 voucher holders. The FMR for a two-bedroom unit is $1500, which is close to the actual median rent of $1454.63, providing a reasonable margin for profit. 2. **Consider Renovations for Larger Units**: If investors are interested in larger units, they should consider renovating existing properties to bring them up to standard while keeping costs within the FMR limits. For example, a three-bedroom unit with an FMR of $1850 could be made more attractive to voucher holders if the property is well-maintained and meets all necessary standards. 3. **Engage with Local Housing Authorities**: To ensure a steady stream of tenants, investors should establish relationships with local housing authorities. This can help in understanding the specific needs of voucher holders and in navigating the complexities of the Section 8 program. It also ensures that the property remains competitive in a tight rental market. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 28054 is to **Hold**. The market dynamics present both opportunities and challenges. While the demand for rental properties is strong, the high cost of acquisition and the potential difficulty in finding units that fit within the FMR guidelines make it a moderate-risk investment. Focusing on two-bedroom units and engaging with local housing authorities can mitigate some of these risks, but the overall investment grade is not as strong as it could be in other areas with lower price-to-FMR ratios. In summary, the ZIP code offers a feasible but not highly lucrative opportunity for Section 8 investors. Careful consideration of unit size and location, along with strategic partnerships with local housing authorities, will be key to success in this market.

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.