Location: Stanly County, NC | Metro: Stanly County, NC
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $219,646 | 0.46% | F |
| 3BR | $1,390 | $307,745 | 0.45% | F |
| 4BR | $1,450 | $591,721 | 0.25% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 28128, which encompasses Norwood, NC, and parts of Stanly County, operate under specific financial guidelines. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $930. This figure represents the maximum amount that the housing authority will pay towards rent for a two-bedroom unit in this area.
In contrast, the local market rent for a two-bedroom apartment in ZIP 28128, based on Census ACS data, averages around $881. This discrepancy highlights the difference between the SAFMR, which is a government-set benchmark, and the actual rents charged by landlords in the area.
A Section 8 voucher works by covering a portion of the rent, with the tenant responsible for paying the remainder. Specifically, the tenant is required to contribute 30% of their adjusted income toward the rent. For instance, if a tenant's adjusted income is $1,000 per month, they would be expected to pay $300 towards rent. The remaining balance, up to the SAFMR limit of $930, would then be covered by the housing authority.
To illustrate, let's assume a two-bedroom apartment is listed at $881, the average market rent. If the tenant's share is $300, the housing authority would reimburse the landlord for the difference, which is $581. In this scenario, the total reimbursement to the landlord would be $881 ($300 from the tenant + $581 from the housing authority).
Additionally, Section 8 vouchers include utility allowances that vary based on the size of the unit and the region. For ZIP 28128, the utility allowance for a two-bedroom apartment can range from $150 to $200 per month, depending on the specifics of the voucher and the household's needs. This allowance is also paid directly to the landlord, further closing the gap between the SAFMR and the market rent.
In summary, when the SAFMR is $930 and the market rent is $881, landlords receive the full market rent plus any applicable utility allowances from the housing authority and the tenant. However, there remains a potential reimbursement gap if the market rent exceeds the SAFMR, or a surplus if it falls below. Given the figures, the typical reimbursement for a two-bedroom apartment in ZIP 28128 would cover the entire market rent, leaving a surplus for landlords who charge less than the SAFMR.
This analysis provides a clear picture of the economic dynamics at play in ZIP 28128, enabling landlords and small-portfolio investors to make informed decisions about participating in the Section 8 program.
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.