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 | $1,320 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,330 |
| 5 Bedrooms | $2,703 |
| 6 Bedrooms | $3,027 |
| 7 Bedrooms | $3,269 |
| 8 Bedrooms | $3,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,380 | $221,962 | 0.62% | D |
| 2BR | $1,500 | $256,890 | 0.58% | F |
| 3BR | $1,830 | $301,660 | 0.61% | D |
| 4BR | $2,330 | $347,626 | 0.67% | D |
| 5BR | $2,703 | $417,737 | 0.65% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 28208 in Charlotte, NC, reveals some key insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2024 is set at $1330 per month. When annualized, this translates to an income of $15,960 per year. Given the median home value of $299,628 in this ZIP code, the implied gross yield for a property rented under the Section 8 program would be approximately 5.33%. This is calculated by dividing the annual rental income by the median home value.
In contrast, the market rent for a similar property, as indicated by the Zillow Observed Rental Index (ZORI), stands at $1,618 per month. Annualizing this figure yields an income of $19,416 per year. Using the same median home value, the implied gross yield for market rent would be about 6.48%. This represents a higher gross yield compared to the Section 8 scenario.
Given that 60.6% of residents in ZIP 28208 are renters, the demand for rental properties is significant. However, the lack of specific Days on Market (DOM) data makes it challenging to predict how quickly a property might be filled under either scenario. Despite this uncertainty, the higher gross yield from market rent suggests a potentially more lucrative opportunity for landlords and investors.
However, the decision to participate in the Section 8 program versus renting at market rates should also consider other factors such as tenant stability, government regulations, and maintenance requirements. While the gross yield from market rent is higher, the Section 8 program can offer more consistent cash flow and fewer vacancies due to the guaranteed rental assistance.
To summarize, the gross yield from a Section 8 rental in ZIP 28208 is 5.33%, while renting at market rates yields a gross return of 6.48%. Market rent provides a higher return, but the benefits of the Section 8 program must be weighed against the lower gross yield.
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.