Location: Stanly 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 | $900 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,420 | $400,630 | 0.35% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 28071 reveals a nuanced investment scenario for landlords and small-portfolio investors. To start, let's examine the Federal Market Rent (FMR) for a two-bedroom unit, which is set at $910 annually for fiscal year 2024. This translates to a monthly rental income of approximately $75.83 under the Section 8 program. Given the median home value in the area is $332,063, the implied gross yield based on the FMR would be around 2.88%. This calculation is derived from the annual rental income ($910) divided by the median home value ($332,063).
In contrast, the market rent for a similar two-bedroom unit is reported at $841 per month according to the Census ACS data. Annualizing this figure yields an annual rental income of $10,092. The implied gross yield using the market rent would thus be about 3.04%, calculated by dividing the annual market rent ($10,092) by the median home value ($332,063).
Given the 13.0% renter density in ZIP 28071, it is important to consider the practical implications of these gross yields. While the market rent scenario suggests a slightly higher potential return, the reality of Section 8 participation involves more than just rental income. The availability of Section 8 vouchers and the time it takes to secure a tenant (N/A-day DOM indicates data is not available for days on market) are critical factors.
Section 8 tenants provide stability and timely payments, which can offset lower gross yields. For instance, the 2.88% gross yield from Section 8 is guaranteed and less volatile compared to the market rent yield of 3.04%, which could fluctuate based on market conditions and tenant turnover. Landlords should weigh the benefits of consistent income against the marginally higher returns from market rents.
In summary, while the market rent scenario offers a marginally better gross yield, the Section 8 program provides a stable income source that is essential for long-term investment planning. The choice between the two depends on the landlord's risk tolerance and investment goals.
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.