Section 8 Fair Market Rent (FMR) for ZIP 28117 - 2027

Investment Score for ZIP 28117

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	$1,890
1 Bedroom	$1,970
2 Bedrooms	$2,140
3 Bedrooms	$2,840
4 Bedrooms	$3,580
5 Bedrooms	$4,153
6 Bedrooms	$4,651
7 Bedrooms	$5,023
8 Bedrooms	$5,274

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
2BR	$2,140	$327,637	0.65%	D
3BR	$2,840	$478,171	0.59%	F
4BR	$3,580	$829,481	0.43%	F
5BR	$4,153	$865,429	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28117 (Mooresville, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 28117 in Mooresville, North Carolina, for 2026 are as follows: - 0BR: $1750 - 1BR: $1830 - 2BR: $2010 (which is 21.3% of the median household income) - 3BR: $2710 - 4BR: $3370 These FMRs represent the maximum amount that a Section 8 voucher holder can pay for rent in various unit sizes. However, it's important to note that these figures are significantly lower than the actual market rents in Mooresville. For instance, the Zillow median price for a 2BR property is $322,762, which translates into a rental cost that is much higher than the FMR. The Price-to-FMR ratio of 13.4x indicates that the actual market rents are about 13.4 times the FMR for a 2BR unit. This suggests that voucher holders face significant constraints in finding affordable housing within their budget. #### Affordability & Renter Profile The population of ZIP 28117 is 48,826, with 32.1% being renters. Given the median household income of $112,976, the affordability of housing is a critical issue for many residents. The fact that a 2BR unit’s FMR represents only 21.3% of the median income implies that most residents can afford to pay more than the FMR. However, this also means that the 32.1% of renters who rely on the local rental market might struggle to find units within their budget, especially those who are Section 8 voucher recipients. The occupancy rate of 88.0% indicates that the rental market is relatively tight, with a high demand for available units. This tightness could lead to upward pressure on rents, making it even more challenging for voucher holders to find suitable housing. Additionally, the high median household income suggests that the area attracts a mix of middle-class and upper-middle-class residents, which could further drive up rental costs. #### Investor Angle From an investor perspective, the ZIP code 28117 presents both opportunities and challenges. The FMRs provide a baseline for what voucher holders can afford, but the actual market rents are much higher. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical rental rates versus the FMRs. Given the high median home value and the Price-to-FMR ratio, it's clear that the actual rental rates far exceed the FMRs. For example, a 2BR unit would likely rent for well over $2010 per month, possibly closer to $2400-$2600 based on the median home value. This means that landlords who accept Section 8 vouchers would be operating at a loss compared to market rates, unless they can secure long-term tenants who are willing to stay despite the lower rent. In terms of investment grade, the high median household income and tight occupancy rate suggest a strong overall market. However, the challenge lies in the mismatch between FMR and actual market rents. Investors should carefully evaluate the potential for attracting voucher holders and weigh this against the possibility of renting to market-rate tenants. #### Specific Actionable Insights 1. **Targeted Marketing**: Landlords who wish to attract Section 8 voucher holders should focus on marketing directly to this demographic. This includes advertising on platforms that cater to low-income families and ensuring that properties meet the necessary standards for voucher acceptance. Given the high median household income, there might be fewer such properties available, making targeted marketing essential. 2. **Property Upgrades**: To make properties more attractive to voucher holders, landlords could consider upgrading amenities and maintenance levels. This could include adding energy-efficient appliances, improving landscaping, and ensuring that the property is in excellent condition. These upgrades could help differentiate the property in a competitive market and potentially increase the likelihood of securing long-term tenants. 3. **Community Partnerships**: Engaging with community organizations that support low-income families can help landlords connect with potential voucher holders. This could involve participating in local housing fairs, partnering with non-profits, and offering educational resources to tenants. Such partnerships can also help landlords navigate the complexities of accepting Section 8 vouchers. #### Bottom Line For Section 8-focused investors, ZIP code 28117 (Mooresville, NC) presents a challenging environment due to the significant gap between FMR and actual market rents. While the overall market is strong, the high median home values and tight occupancy rates mean that cash flow will likely be negative when relying solely on FMRs. Therefore, the recommendation for investors is to **Skip** this ZIP code unless they have a specific strategy to attract and retain voucher holders while managing the financial impact of lower rents. However, if an investor is willing to take on the challenge and can effectively manage property upgrades and community partnerships, there might still be opportunities to create a niche market for affordable housing. But given the data, the primary recommendation remains to skip this ZIP code for Section 8-focused investments.

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.