Section 8 Fair Market Rent (FMR) for ZIP 28115 - 2027

Investment Score for ZIP 28115

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	$1,300
1 Bedroom	$1,360
2 Bedrooms	$1,490
3 Bedrooms	$1,970
4 Bedrooms	$2,480
5 Bedrooms	$2,877
6 Bedrooms	$3,222
7 Bedrooms	$3,480
8 Bedrooms	$3,654

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	$1,360	$176,499	0.77%	D
2BR	$1,490	$239,599	0.62%	D
3BR	$1,970	$355,903	0.55%	F
4BR	$2,480	$473,845	0.52%	F
5BR	$2,877	$562,645	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28115 (Mooresville, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 28115, as set by HUD for 2026, ranges from $1190 for a zero-bedroom unit to $2310 for a four-bedroom unit. For a two-bedroom unit, the FMR is $1370. This amount represents 18.7% of the median household income in Mooresville, which stands at $87,787. The FMRs are significantly lower than the actual rents in the area, as evidenced by the Zillow median price for a two-bedroom home, which is $236,099. The price-to-FMR ratio for a two-bedroom unit is approximately 14.4x, indicating that the actual rental prices are much higher than what is considered fair market rent. This disparity creates significant constraints for voucher holders. They must find landlords willing to accept the voucher at the FMR rate, which is substantially below the market rate. Given the high occupancy rate of 93.5%, finding available units at or below FMR could be challenging. Additionally, the limited number of units that fit the criteria might lead to intense competition among voucher holders, potentially driving up the cost for them as they bid against each other for scarce affordable housing options. #### Affordability & Renter Profile In ZIP code 28115, 25.6% of the population are renters, indicating a moderate demand for rental properties. With a median household income of $87,787, most residents can afford market-rate rentals, but the 18.7% of median income required for a two-bedroom unit at FMR suggests that those who rely on Section 8 vouchers are likely to be low-income households. These households would find it difficult to secure housing without assistance, given the high market rates. The tight market conditions, with a high occupancy rate, suggest that there is a strong demand for housing overall. However, the gap between FMR and market rates indicates that the supply of affordable housing is limited. This makes it a challenging environment for low-income renters, particularly those dependent on Section 8 vouchers, as they face both a lack of affordable units and fierce competition for the few that do exist. #### Investor Angle From an investor perspective, the ZIP code 28115 presents a mixed picture. While the market rates are high, making it attractive for investors seeking to maximize returns, the FMRs set by HUD are relatively low. For instance, a two-bedroom unit has an FMR of $1370, whereas the median market price is $236,099. This means that if an investor were to purchase a property and rent it out at FMR, they would likely struggle to achieve positive cash flow due to the high acquisition costs and associated expenses such as maintenance, property taxes, and insurance. Given the high price-to-FMR ratio of 14.4x, it is clear that the investment grade for properties rented at FMR is low. Investors would need to carefully consider their financial models to ensure that they can cover all costs and still generate a reasonable return. The tight market conditions also mean that there is less flexibility in terms of negotiating rental prices, as tenants are willing to pay more to secure housing in a competitive environment. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that can be rented at or near the FMR levels. This includes smaller units like zero-bedroom or one-bedroom apartments, where the FMR is $1190 and $1250 respectively. These units are more likely to be affordable for voucher holders and could provide better cash flow opportunities. 2. **Consider Multi-Family Units**: Given the high FMR for larger units, multi-family buildings could offer a more balanced approach. By renting out multiple units at different sizes, investors can spread the risk and potentially achieve better overall returns. For example, a three-bedroom unit has an FMR of $1850, which is still significantly lower than the median market price but offers more space and potentially higher demand. 3. **Engage with Local Housing Authorities**: To improve the chances of securing tenants with Section 8 vouchers, investors should establish relationships with local housing authorities. Understanding the voucher process and being proactive in accepting vouchers can help attract tenants who are otherwise struggling to find affordable housing. #### Bottom Line For Section 8-focused investors, the ZIP code 28115 (Mooresville, NC) is generally a **Skip** recommendation. The high price-to-FMR ratio and tight market conditions make it difficult to achieve positive cash flow when renting at FMR levels. Investors looking to target this market should carefully evaluate their financial models and consider alternative strategies, such as targeting lower-rent properties or engaging with local housing authorities to streamline the voucher acceptance process. However, given the limited supply of affordable units and the high competition for these units, the risk of negative cash flow is substantial. Therefore, unless investors have a strong understanding of the local market dynamics and can navigate the challenges effectively, it is advisable to look elsewhere for more favorable investment opportunities.

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.