Location: Iredell County, NC | Metro: Iredell 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 | $1,350 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $270,676 | 0.57% | F |
| 3BR | $2,030 | $352,449 | 0.58% | F |
| 4BR | $2,560 | $424,889 | 0.6% | D |
| 5BR | $2,970 | $472,872 | 0.63% | D |
U.S. Census Bureau data (2024)
The ZIP code 28166, located in Troutman, NC, presents an interesting scenario when analyzed from the perspective of renters. The median income for households in this area is $93,511, which is a solid figure. However, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), stands at $1,941 per month. This places a significant burden on renters, especially those who might be earning close to the median income.
To put this into context, the Fair Market Rent (FMR) for the zip code for fiscal year 2024, which is the standard used for calculating Housing Choice Voucher payments, is set at $1,430. This means that the government aims to ensure that low-income families do not spend more than 30% of their adjusted income on housing. For a household earning the median income, the difference between the ZORI and the FMR represents a substantial affordability gap.
In Troutman, where the total population is 11,875 and only 16.2% of the residents are renters, this gap has implications for the competition among landlords. Given the relatively low percentage of renters, landlords must consider the balance between attracting tenants who can pay the market rate and those who rely on vouchers. The disparity between the ZORI and the FMR suggests that landlords could face challenges in filling units if they exclusively target cash-paying tenants who can afford the higher market rates.
The takeaway for landlords considering their strategy in ZIP 28166 is clear: there is a notable segment of the population that may struggle to afford market-rate rents. Accepting vouchers, which align with the FMR, can provide a stable and reliable source of income while ensuring that units remain occupied. This approach also helps to meet the needs of lower-income households, contributing to the community's stability and diversity.
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.