Section 8 Fair Market Rent (FMR) for ZIP 28110 - 2027

Investment Score for ZIP 28110

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	$1,430
1 Bedroom	$1,490
2 Bedrooms	$1,620
3 Bedrooms	$1,980
4 Bedrooms	$2,520
5 Bedrooms	$2,923
6 Bedrooms	$3,274
7 Bedrooms	$3,536
8 Bedrooms	$3,713

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	$1,620	$272,049	0.6%	F
3BR	$1,980	$351,054	0.56%	F
4BR	$2,520	$443,212	0.57%	F
5BR	$2,923	$516,377	0.57%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28110 (Monroe, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Monroe, NC (ZIP 28110), indicate that the rent for a two-bedroom unit is set at $1550 per month. This is a critical benchmark for Section 8 voucher holders, who are limited by the amount their vouchers can cover. According to the provided data, the FMR for a two-bedroom unit represents 22.3% of the median household income in the area, which is $83,480. This suggests that while the FMR is relatively affordable compared to the median income, it still imposes significant constraints on voucher holders. For instance, if a voucher holder has a household income of $83,480, they would be required to pay approximately $1840 per month in rent (the difference between the Zillow median price of $269,986 and the FMR of $1550, divided by 12 months). This highlights a potential mismatch between the actual rental market and what voucher holders can afford. #### Affordability & Renter Profile The renter profile in Monroe, NC, is diverse but primarily consists of individuals and families who make up 25.0% of the total population of 56,971. Given that the occupancy rate is 93.5%, it indicates a fairly tight rental market where most available units are occupied. The median household income of $83,480 suggests that the majority of residents are middle-class, and the 25% renter percentage implies a substantial portion of the population relies on rental housing. With the FMR for a two-bedroom unit being $1550, this segment of the market is relatively affordable for those earning the median income. However, the high occupancy rate and the fact that the Zillow median price for a two-bedroom home is $269,986, which translates to a monthly mortgage payment of around $2249 (assuming a 4.5% interest rate and a 30-year fixed mortgage), underscores the challenge faced by renters in finding affordable options. The price-to-FMR ratio of 14.5x further emphasizes the disparity between the cost of owning versus renting. #### Investor Angle From an investor’s perspective, the ZIP code 28110 presents a mixed picture. The FMR for a two-bedroom unit is $1550, which is significantly lower than the Zillow median price of $269,986. This means that properties purchased at the Zillow median price would likely generate a negative cash flow if rented out at the FMR. To illustrate, if a property is purchased for $269,986, the monthly mortgage payment would be around $2249, which is already higher than the FMR of $1550. Therefore, the cash flow would be negative unless the property could be rented out for more than the FMR, which is unlikely given the tight rental market and the high occupancy rate. The investment grade for this ZIP code would be considered low due to the negative cash flow potential and the high price-to-FMR ratio. Investors looking to capitalize on the rental market in Monroe, NC, should consider purchasing properties below the Zillow median price or in areas with lower FMRs to ensure positive cash flow. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that can be rented out at or slightly above the FMR levels. For example, a two-bedroom unit priced at $1550 per month is more likely to attract Section 8 voucher holders. If a property can be rented out for $1650-$1750, it might still be attractive to voucher holders while providing a small profit margin. 2. **Consider Smaller Units**: Given the constraints imposed by the FMR, smaller units such as one-bedroom or studio apartments might offer better opportunities for positive cash flow. The FMR for a one-bedroom unit is $1410, which is lower than the two-bedroom FMR. This could provide a buffer for investors to manage expenses and still maintain profitability. 3. **Evaluate Location-Specific Opportunities**: While the overall market in Monroe, NC, may not be favorable for Section 8-focused investments, there might be pockets within the ZIP code where rental rates are lower. Investors should conduct thorough research to identify these areas and potentially acquire properties at a discount. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP 28110 (Monroe, NC) is to **Skip** this market. The financial constraints imposed by the FMR and the high costs associated with property ownership make it challenging to achieve positive cash flow. Investors should look for markets with lower ratios and more favorable conditions for Section 8 rentals.

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.