Location: Rowan County, NC | Metro: Rowan County, NC HUD Metro FMR Area
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 | $1,030 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $170,930 | 0.77% | D |
| 3BR | $1,660 | $252,273 | 0.66% | D |
| 4BR | $2,190 | $339,281 | 0.65% | D |
| 5BR | $2,540 | $437,235 | 0.58% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 28144 in Salisbury, NC, reveals a stark contrast between government-subsidized rental income and market-driven returns. For a two-bedroom property, the Fair Market Rent (FMR) set by the government for fiscal year 2024 is $1,150 per month. When annualized, this translates to an annual rental income of $13,800. Given the median home value in the area is $231,071, the implied gross yield for a Section 8 property is approximately 6%. This is calculated by dividing the annual rental income ($13,800) by the median home value ($231,071).
In contrast, the market rent for a similar two-bedroom property, as indicated by Zillow's ZORI index, stands at $1,457 per month. Annualizing this figure yields an annual rental income of $17,484. Using the same median home value, the implied gross yield for a market-rent property is about 7.5%, calculated by dividing $17,484 by $231,071.
The gross yield comparison clearly favors market-rent properties over those participating in the Section 8 program. However, the decision should also consider the local rental market dynamics. With a renter density of 45.3%, there is a significant portion of the population that relies on rental housing, which could stabilize demand for Section 8 units. The lack of data on days on market (DOM) suggests either a robust market where properties are rented quickly or a less active market where accurate DOM data is unavailable. Given the higher gross yield from market rents, it might be more attractive for landlords and small-portfolio investors to aim for market rates if they can secure tenants willing to pay them. However, the stability provided by Section 8 contracts could be appealing in a region with high tenant dependency on subsidies.
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.