Location: Lincoln 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 | $1,170 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,330 | $245,230 | 0.54% | F |
| 3BR | $1,840 | $372,349 | 0.49% | F |
| 4BR | $2,220 | $562,556 | 0.39% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 28080, Iron Station, NC, are straightforward when analyzed against the local rental market. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) established for this specific ZIP code is set at $1240 for fiscal year 2024. This figure is crucial because it directly influences the amount that a landlord can expect to receive from the government under the Section 8 program.
In contrast, the local market rent for a similar unit, based on Census ACS data, averages $1,147. This indicates that the SAFMR is slightly higher than the average market rate, which can be advantageous for landlords participating in the program.
A landlord should understand that the total payment received from a Section 8 voucher includes both the tenant's portion and the government subsidy, along with any utility allowances. The tenant's portion is typically calculated as 30% of their adjusted income. If we assume an average adjusted income of $1,500 per month, the tenant would contribute approximately $450 towards rent. This leaves the remaining balance to be covered by the government subsidy.
The government will pay the difference between the tenant’s contribution and the SAFMR, up to the limit of $1240. In this case, the landlord would receive the full $1240 if the tenant’s portion plus the government subsidy equals or exceeds that amount. However, if the combined payment falls short of $1240, the landlord still receives the maximum allowable subsidy under the program, which is $1240.
Utility allowances vary but are generally modest. They do not significantly impact the overall reimbursement amount compared to the base rent subsidy. Therefore, landlords can reasonably expect a steady income close to the SAFMR without worrying about significant fluctuations due to utility costs.
Given these parameters, there is a potential surplus in this ZIP code. Landlords could receive a subsidy that is $93 above the local market rent average. This means that even if the market rent were to rise slightly above the average, landlords would still be fairly compensated by the Section 8 program. Conversely, if market rents drop below $1,147, landlords might see a larger surplus, making participation in the Section 8 program financially beneficial in ZIP 28080.
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.