Section 8 Fair Market Rent (FMR) for ZIP 28079 - 2027

Investment Score for ZIP 28079

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	$2,080
1 Bedroom	$2,170
2 Bedrooms	$2,360
3 Bedrooms	$2,880
4 Bedrooms	$3,670
5 Bedrooms	$4,257
6 Bedrooms	$4,768
7 Bedrooms	$5,149
8 Bedrooms	$5,406

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
2BR	$2,360	$291,089	0.81%	C
3BR	$2,880	$378,683	0.76%	D
4BR	$3,670	$476,236	0.77%	D
5BR	$4,257	$562,453	0.76%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28079 (Lake Park, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 28079 (Lake Park, NC) in 2026 indicate that the cost of renting a 2BR unit is $2,220, which represents 26.5% of the median household income of $100,516. This suggests that a significant portion of the median income is allocated towards housing costs, potentially making it challenging for voucher holders to find affordable units. The actual rents in the area can be inferred from the Zillow median price for a 2BR home, which is $289,899. Given the price-to-FMR ratio of 10.9x, we can estimate that the average rent for a 2BR unit is approximately $2,650 ($289,899 / 10.9). Therefore, the actual rent is significantly higher than the FMR, creating a gap where voucher holders might struggle to find suitable accommodations without exceeding their budget. #### Affordability & Renter Profile With a population of 43,035, Lake Park has a relatively high occupancy rate of 96.4%, indicating a tight rental market. The renter percentage stands at 20.7%, meaning about 9,000 residents are renters. Given the median household income and the FMR, it is likely that the majority of renters in this area are middle-income earners who can afford the higher rents. However, the 26.5% of median income allocated to a 2BR unit suggests that lower-income households would face considerable challenges in affording housing, especially if they rely on Section 8 vouchers. The disparity between the FMR and the estimated average rent indicates that the market is not particularly favorable for low-income renters, who might have limited options due to the high rent prices. #### Investor Angle From an investor's perspective, the ZIP code 28079 presents both opportunities and challenges. The FMR for a 2BR unit is $2,220, but the estimated average rent is around $2,650. This means that properties rented at the FMR level would still generate a positive cash flow, albeit slightly below the market average. The investment grade of the area can be considered moderate, given the tight rental market and the relatively high median household income. Investors should be aware that while there is demand for rental units, the competition from market-rate rentals could impact the ability to attract tenants using only the FMR. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should consider acquiring properties that can be rented out at rates just below the FMR. For example, a 2BR unit priced at $2,100 would still be attractive to voucher holders and provide a slight margin over the FMR, ensuring positive cash flow. 2. **Target Middle-Income Renters**: Given the high median household income and the tight rental market, targeting middle-income renters who can afford slightly above FMR rates might be more profitable. A 2BR unit priced at $2,400 would cater to this demographic and offer better returns compared to strictly adhering to the FMR. 3. **Consider Larger Units**: The FMR for larger units (3BR and 4BR) is $2,730 and $3,470 respectively. These higher FMRs could make larger units more appealing for investors, as they can potentially command higher rents due to the scarcity of such units in the area. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 28079 is to **Hold**. While there is a potential for positive cash flow by renting units at or slightly below the FMR, the tight rental market and the high disparity between FMR and actual rents suggest that finding properties that strictly adhere to FMR guidelines will be challenging. Investors should be prepared to cater to a broader range of renters, including those who can afford slightly above FMR rates, to ensure steady occupancy and returns.

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.