Location: Cleveland 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 | $910 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $188,139 | 0.56% | F |
| 3BR | $1,430 | $289,023 | 0.49% | F |
| 4BR | $1,510 | $359,885 | 0.42% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 28086, which includes Kings Mountain, North Carolina, is set at $1020 for fiscal year 2024. This figure represents the maximum amount the U.S. Department of Housing and Urban Development (HUD) will pay landlords participating in the Section 8 program for a given unit. It's important to note that this is not the rent you can charge your tenants; it is the reimbursement standard.
In contrast, the average rent in Kings Mountain is higher, standing at $1,653. This discrepancy indicates that if you're considering a Section 8 rental, you'll be setting your rent based on the lower FMR rather than the market rate. However, this doesn't mean you should avoid Section 8 properties entirely. The 27.6% share of renters in the area suggests a significant portion of the population is looking for affordable housing options, creating a steady demand for Section 8 units.
If you're thinking about acquiring a property for a Section 8 rental, you should consider the typical purchase price in the area. According to recent data, the average home acquisition cost in ZIP 28086 is around $240,568. While this might seem high compared to the rental income, remember that Section 8 provides a reliable source of income through government subsidies, ensuring your tenants can afford to pay the rent.
Before making your decision, there's one key verification you must perform. Ensure that the property meets all HUD's requirements for habitability and safety. This includes passing inspections for lead-based paint, electrical systems, plumbing, and general maintenance. If these conditions are met, the FMR of $1020 can provide a predictable and stable income stream, especially when compared to the higher but potentially riskier market rates.
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.