Section 8 Fair Market Rent (FMR) for ZIP 28092 - 2027

Investment Score for ZIP 28092

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	$960
1 Bedroom	$1,000
2 Bedrooms	$1,090
3 Bedrooms	$1,510
4 Bedrooms	$1,820
5 Bedrooms	$2,111
6 Bedrooms	$2,364
7 Bedrooms	$2,553
8 Bedrooms	$2,681

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,000	$152,733	0.65%	D
2BR	$1,090	$191,647	0.57%	F
3BR	$1,510	$308,007	0.49%	F
4BR	$1,820	$421,857	0.43%	F
5BR	$2,111	$441,261	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28092 (Lincolnton, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 28092 (Lincolnton, NC) in 2026 indicate that the rent for a two-bedroom apartment is set at $1,010. This represents approximately 19.9% of the median household income in the area, which is $60,984. For a three-bedroom apartment, the FMR is $1,400, and for a four-bedroom apartment, it is $1,680. These figures are crucial for understanding how much assistance a Section 8 voucher holder can receive. However, the actual rental market in Lincolnton is significantly higher. The Zillow median price for a two-bedroom home is $188,424, which translates into a monthly mortgage payment far exceeding the FMR. The price-to-FMR ratio of 15.5x suggests that the average cost of renting a two-bedroom property is around $15,655 per year ($1,304.58 per month), well above the $1,010 FMR. This means that voucher holders face significant constraints in finding affordable housing within their budget. They would likely need to look for properties below the FMR or negotiate with landlords who are willing to accept the voucher amount. #### Affordability & Renter Profile In ZIP code 28092, 30.0% of the population are renters, indicating a substantial demand for rental properties. With a total population of 40,350, there are approximately 12,105 renters in the area. Given the occupancy rate of 93.3%, it is clear that the rental market is relatively tight, with few vacant units available. This tightness could lead to upward pressure on rental prices, making it even more challenging for low-income families to find affordable housing. The median household income of $60,984 suggests that many residents have moderate incomes, but a significant portion may still struggle to afford the high rental costs. The FMR for a two-bedroom unit being only 19.9% of the median income indicates that a considerable number of households fall below the median income level and rely heavily on rental assistance programs like Section 8. #### Investor Angle From an investor’s perspective, the ZIP code 28092 presents a mixed picture. The FMR for a two-bedroom unit is $1,010, while the actual rental market price is much higher. If an investor purchases a two-bedroom property at the Zillow median price of $188,424, they would likely need to finance the purchase. Assuming a 20% down payment, the loan amount would be $150,739.20. At a typical interest rate of 5%, the monthly mortgage payment would be approximately $834. This leaves a potential cash flow of $176 per month if the property is rented at the FMR. However, this calculation does not include other expenses such as property taxes, insurance, maintenance, and utilities, which would further reduce the net cash flow. Given these dynamics, the investment grade for properties in this ZIP code is moderate to low for Section 8-focused investors. While the FMR provides a baseline for rental income, the actual costs of owning and maintaining a property are likely to exceed this amount, leading to negative cash flow scenarios unless the investor can secure a higher rent or has a lower financing cost. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should consider acquiring properties where the rent is already below the FMR. For instance, a two-bedroom unit renting for $950 would provide a better cash flow scenario when compared to the FMR of $1,010. This would allow them to potentially cover operating expenses and still generate a small profit. 2. **Negotiate with Landlords**: Given the high price-to-FMR ratio, landlords who are willing to accept the voucher amount will be critical for voucher holders. Investors might benefit from negotiating with existing landlords to offer lower rents that align more closely with the FMR, thereby attracting more Section 8 tenants. 3. **Consider Multi-Family Units**: The FMR for larger units, such as three-bedroom and four-bedroom apartments, is higher. A three-bedroom unit renting at $1,400 or a four-bedroom unit renting at $1,680 would provide a better cash flow opportunity. Investors should focus on multi-family units that can accommodate larger families and still remain within the FMR range. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 28092 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow. Additionally, the median household income and the percentage of renters suggest that the market is already competitive, with limited opportunities for securing properties at prices that align with the FMR. Investors looking to enter this market should carefully evaluate their financial models and consider alternative ZIP codes with more favorable rental dynamics.

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.