Location: Charlotte-Concord-Gastonia, NC | Metro: Charlotte-Concord-Gastonia, NC-SC 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 | $2,360 |
| 1 Bedroom | $2,460 |
| 2 Bedrooms | $2,680 |
| 3 Bedrooms | $3,270 |
| 4 Bedrooms | $4,160 |
| 5 Bedrooms | $4,826 |
| 6 Bedrooms | $5,405 |
| 7 Bedrooms | $5,837 |
| 8 Bedrooms | $6,129 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,460 | $314,679 | 0.78% | D |
| 2BR | $2,680 | $495,614 | 0.54% | F |
| 3BR | $3,270 | $774,032 | 0.42% | F |
| 4BR | $4,160 | $1,526,776 | 0.27% | F |
| 5BR | $4,826 | $1,940,651 | 0.25% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 28203 (Charlotte, NC) for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $2,330 cover the debt service on a property valued at $685,966?
If the debt service on a property priced at $685,966 is less than or equal to $2,330 per month, then the answer is yes. This means that the rental income generated from a Section 8 tenant would be sufficient to meet the mortgage obligations. However, if the debt service exceeds $2,330, then the answer is no. In such a case, the landlord would not be able to rely solely on Section 8 payments to cover their monthly expenses.
2) Is the market rent of $1,948 (ZORI) above, at, or below the FMR?
The ZORI (Zillow Rent Index) for the area is $1,948, which is below the FMR of $2,330. This indicates that landlords could potentially earn more from Section 8 tenants compared to the average market rent. If the ZORI were higher than the FMR, landlords might prefer renting to non-Section 8 tenants to maximize their income. Since the ZORI is lower, the answer is yes; Section 8 can offer better returns than the general market.
3) Are 70.6% renters and N/A-day days on market (DOM) enough demand?
A significant portion of the residents in ZIP 28203 are renters, comprising 70.6% of the population. This high percentage suggests strong demand for rental properties. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties are rented out. Despite this, given the high percentage of renters, the answer is generally yes. There is enough demand to support Section 8 investments, but landlords should monitor local rental trends and competition.
Note: The analysis assumes that the debt service calculation is accurate and that other factors such as maintenance costs and vacancy rates are considered separately.
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.