Location: Rutherford County, NC | Metro: Cleveland 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 | $880 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $167,618 | 0.62% | D |
| 3BR | $1,440 | $245,290 | 0.59% | F |
| 4BR | $1,460 | $361,056 | 0.4% | F |
| 5BR | $1,694 | $468,638 | 0.36% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 28150 in Rutherford County, North Carolina, reveals several key points that are crucial for landlords and small-portfolio investors.
The rent math does not favor the Federal Market Rent (FMR) of $950 for the metro area in fiscal year 2026. The actual market rent, as indicated by ZORI (Zillow's Observed Rental Index), stands at $1,136. This suggests that properties in this ZIP code may struggle to attract tenants eligible for Section 8 vouchers due to the discrepancy between the FMR and market rates.
Acquisition appears to be relatively affordable in ZIP 28150, with a median home value of $201,083. However, the lack of data on days on market (DOM) and the low percentage of homes experiencing price cuts (0.2%) imply that the housing market is stable but not particularly volatile. This stability can be advantageous for investors seeking long-term, consistent returns rather than short-term gains.
Tenant demand is strong in ZIP 28150, with a total population of 28,142 and a significant 30.8% of residents being renters. This high renter share indicates a robust market for rental properties, which could support a steady stream of potential tenants.
Verdict: While the rent math currently does not align well with Section 8 standards due to the higher market rent compared to the FMR, the affordability of acquisitions and strong tenant demand make ZIP 28150 an attractive investment location for those willing to explore non-Section 8 opportunities. The stable housing market offers assurance against sudden price drops, contributing to a secure investment environment. For investors focused on rental income, the high proportion of renters in the population signals a favorable climate for maintaining occupancy rates and generating consistent revenue.
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.