Location: Rowan 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 | $1,220 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,260 | $159,700 | 0.79% | D |
| 2BR | $1,420 | $205,991 | 0.69% | D |
| 3BR | $1,750 | $289,782 | 0.6% | D |
| 4BR | $2,250 | $348,479 | 0.65% | D |
| 5BR | $2,610 | $394,092 | 0.66% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 28083, which covers Kannapolis, NC, in Cabarrus County, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, set at $1260 for fiscal year 2024. This SAFMR is specific to this ZIP code, reflecting local rental conditions more accurately than broader regional averages.
Local market rents, as measured by ZORI (Zillow Observed Rent Index), stand at $1,726 for a similar unit. This difference between the SAFMR and the local market rent highlights the financial considerations for landlords participating in the Section 8 program.
A Section 8 voucher payment is calculated based on the SAFMR, not the local market rent. Here's a breakdown of how it works:
In summary, for a two-bedroom apartment in ZIP 28083, a landlord can expect a total reimbursement of around $1,260 per month, which includes both the tenant's contribution and the voucher payment. Given the local market rent of $1,726, this results in a reimbursement gap of $466 per month for landlords who choose to participate in the Section 8 program.
This gap must be considered when deciding whether to accept Section 8 vouchers. While there are benefits such as guaranteed payment and reduced vacancy rates, the economic reality is a lower net income compared to market-rate rentals. Landlords must weigh these factors against the stability and security offered by the program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.