Section 8 Fair Market Rent (FMR) for ZIP 28105 - 2027

Investment Score for ZIP 28105

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	$1,740
1 Bedroom	$1,810
2 Bedrooms	$1,970
3 Bedrooms	$2,410
4 Bedrooms	$3,060
5 Bedrooms	$3,550
6 Bedrooms	$3,976
7 Bedrooms	$4,294
8 Bedrooms	$4,509

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	$1,970	$328,058	0.6%	D
3BR	$2,410	$407,863	0.59%	F
4BR	$3,060	$579,866	0.53%	F
5BR	$3,550	$751,870	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28105 (Matthews, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 28105 is set by HUD for 2026, with the following figures: - 0BR: $1640 - 1BR: $1720 - 2BR: $1880 (which represents 20.9% of the median household income) - 3BR: $2320 - 4BR: $2940 These FMRs represent the maximum rent that a Section 8 voucher holder can pay for a unit in Matthews, NC. However, it is important to note that the actual rental market may have different dynamics. For instance, the Zillow median price for a 2BR home in this area is $331,836, which translates to a monthly mortgage payment of approximately $1550 based on a 4.5% interest rate over 30 years. This suggests that landlords who own properties outright or have low mortgage payments might be able to offer rentals close to the FMR levels. However, the high price-to-FMR ratio of 14.7x indicates that the cost of buying a property in this area is significantly higher compared to the rent that can be charged under the Section 8 program. This means that landlords who purchase properties in this ZIP code will likely face significant challenges in achieving positive cash flow if they rely solely on Section 8 vouchers. #### Affordability & Renter Profile Matthews, NC has a population of 46,817, with 32.4% of residents being renters. The occupancy rate stands at 94.5%, indicating a strong demand for housing in the area. The median household income is $108,190, which is relatively high, suggesting that many residents have the financial capability to afford higher rents. However, the 20.9% of median income allocated to a 2BR unit under the FMR guidelines implies that there is a significant portion of the population who may struggle to find affordable housing options. Given the high median income and the tight rental market, it is likely that the majority of renters are middle-class individuals or families who are seeking more affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 28105 presents a challenging environment for positive cash flow when relying solely on Section 8 vouchers. The high price-to-FMR ratio of 14.7x means that the cost of purchasing a property far exceeds the potential rental income that can be generated through Section 8 vouchers. For example, a 2BR unit priced at $331,836 would have a monthly mortgage payment of around $1550, leaving little room for profit when the maximum allowable rent under Section 8 is only $1880. This makes it difficult for investors to achieve positive cash flow without additional subsidies or creative financing strategies. The investment grade for this ZIP code would be considered low due to the high costs associated with property acquisition and the limited rental income that can be derived from Section 8 vouchers. Investors looking to enter this market should carefully consider their risk tolerance and explore alternative investment strategies that could potentially offset the high costs. #### Specific Actionable Insights 1. **Focus on Properties with Low Mortgage Payments**: Investors should seek out properties with lower mortgage payments or those that are fully paid off. A fully owned property or one with a low mortgage payment would allow for greater flexibility in setting rental rates that align with the FMR guidelines while still generating positive cash flow. For instance, a 2BR property with a mortgage payment of $1000 would leave a margin of $880 for other expenses and profits. 2. **Consider Alternative Financing Options**: Given the high price-to-FMR ratio, investors might need to look into alternative financing options such as government grants, tax credits, or partnerships with local housing authorities. These can help reduce the overall cost of acquiring a property and make it more feasible to operate within the FMR limits. 3. **Explore Multi-Family Units**: Investing in multi-family units could provide a better opportunity for positive cash flow. While the FMR for individual units is capped, the total revenue from multiple units could be higher. Additionally, multi-family units often have economies of scale that can reduce per-unit operating costs. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market in ZIP code 28105, the recommendation for Section 8-focused investors is to **Skip** this market. The high costs of property acquisition and the limited rental income that can be generated through Section 8 vouchers make it difficult to achieve positive cash flow. Investors should look for areas with a more favorable price-to-FMR ratio or explore alternative investment strategies that can mitigate the financial risks associated with this market.

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.