Section 8 Fair Market Rent (FMR) for ZIP 28205 - 2027

Investment Score for ZIP 28205

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,480
1 Bedroom	$1,540
2 Bedrooms	$1,680
3 Bedrooms	$2,050
4 Bedrooms	$2,610
5 Bedrooms	$3,028
6 Bedrooms	$3,391
7 Bedrooms	$3,662
8 Bedrooms	$3,845

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,540	$264,415	0.58%	F
2BR	$1,680	$382,961	0.44%	F
3BR	$2,050	$467,592	0.44%	F
4BR	$2,610	$864,384	0.3%	F
5BR	$3,028	$1,311,801	0.23%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28205 (Charlotte, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 28205 in Charlotte, NC, as of 2026, are set at $1620 for a two-bedroom unit. This is 25.7% of the median household income of $75,622, indicating that the rent is relatively affordable for those earning the median income. However, it's important to note that the actual rental market in this area is significantly higher. The Zillow median price for a two-bedroom home is $383,497, which translates to a price-to-FMR ratio of 19.7x. This suggests that the actual rents in the area could be much higher than the FMR, potentially creating significant constraints for voucher holders. For instance, if the average rent for a two-bedroom unit is around $1620, voucher holders might struggle to find units that accept their vouchers due to the high demand and limited supply of affordable housing. #### Affordability & Renter Profile ZIP code 28205 has a population of 51,806, with 57.5% of residents being renters. This indicates a strong rental market, likely driven by the high percentage of renters. The occupancy rate of 93.6% further supports the notion that the market is tight, with most available units being occupied. Given the median household income of $75,622, many residents are likely middle-class individuals or families who can afford the higher rents but may still face challenges in finding affordable housing. The high price-to-FMR ratio suggests that the market is overpriced relative to the FMR, making it difficult for low-income households to find suitable rentals without assistance. #### Investor Angle From an investor perspective, the ZIP code 28205 presents a mixed picture. While the rental market is robust and there is a high demand for units, the actual rents are far above the FMR. If an investor were to purchase a property and rent it out at the FMR, they would likely see negative cash flow. For example, a two-bedroom unit priced at $1620 per month would need to cover mortgage payments, maintenance, property taxes, and other expenses, which are likely to exceed this amount given the median home price of $383,497. Therefore, the investment grade for properties rented at FMR in this ZIP code is low, as the returns would be minimal or non-existent. #### Specific Actionable Insights 1. **Focus on Units Accepting Vouchers**: Investors should consider targeting properties that are willing to accept Section 8 vouchers. Although the rents will be lower, the steady stream of government-subsidized payments can provide a reliable source of income. It’s crucial to ensure that the property management costs do not exceed the rental income. 2. **Consider Multi-Family Properties**: Given the high occupancy rate and the large number of renters, multi-family properties may offer better opportunities for positive cash flow. Investors should look into purchasing or developing apartment complexes that can cater to the needs of both voucher holders and other renters, thereby diversifying their tenant base and stabilizing income. 3. **Evaluate Property Values Relative to FMR**: Before investing, evaluate whether the property values are aligned with the FMR. A two-bedroom unit priced at $1620 per month would need to be purchased at a value that allows for a reasonable return when factoring in all expenses. Given the high median home price, it might be more prudent to seek out properties that are undervalued or have potential for renovation and appreciation. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 28205 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow when renting at FMR levels. Instead, investors might want to focus on areas with a lower price-to-FMR ratio or where the rental market is less competitive. Alternatively, they could consider investing in properties that are already established as accepting Section 8 vouchers, provided that the purchase price aligns with the expected rental income and expenses.

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.